Investment Review - July 2022
- The major averages logged steep declines for the month of June, (and indeed for the first half of 2022) as concerns over heightened inflation and the fears of a recession weighed heavily on risk assets. The S&P 500 Index closed down 20.6% year-to-date, logging its worst first-half return since 1970. The Dow Jones Industrial Average had its largest first-half drop since 1962 and the Nasdaq had its largest percentage drop ever.
- The rise in interest rates has also scared investors away from cryptocurrencies this year. Bitcoin crashed below $20,000 in June. Both Bitcoin and Ethereum reached all-time highs in November of 2021. But both have since dropped by over two-thirds.
- After climbing to near-record levels in March, gold fell 7.4% in 2Q to $1,804 a troy ounce, the largest percentage decline since March 2021. Higher yields on government bonds and a stronger US dollar are making gold less attractive.
Sources: Bloomberg, FACTSET, U.S. BEA, U.S. BLS, Federal Reserve, Instit. For Supply Mgmt, ISI, IBD, Yardeni Research
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