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Why 2022 was such a nasty 12 months for the inventory market – Washington Publish – The Washington Publish

It was a troublesome 12 months to earn money within the inventory market. The S&P 500 peaked on the primary buying and selling day of 2022 and by no means got here near revisiting its excessive level.

The extensively used market gauge is on observe for its worst 12 months for the reason that 2008 monetary disaster. One factor defined shares’ struggles: After years of straightforward cash, the Federal Reserve started elevating rates of interest in March to fight inflation and by no means stopped. Hold scrolling to see how the 12 months unfolded.

Wanting forward, Wall Avenue analysts say shares gained’t acquire floor till the Fed stops elevating charges. With policymakers promising a minimum of two extra charge will increase in 2023, the subsequent bull market is unlikely to begin any time quickly. Whereas inflation can be unhealthy for bonds, greater rates of interest are making some safer investments, resembling cash market mutual funds and short-term Treasury securities, a greater wager.

Modifying by Jennifer Liberto, Kate Rabinowitz and Karly Domb Sadof.

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