Year in Review — 2022
2022 was a disappointing year for investors, as markets plummeted. The Dow Jones lost 9.40%, the Nasdaq shed 33.89%, and the S&P500 dropped 19.95%.
Some top stocks had some of their worst yearly performances. Tesla, Meta, PayPal, and many others had extremely poor performances; TSLA (-69.20%), META (-64.45%), PYPL (-63.47%), NVDA (-51.48%), AMD (-56.89%).
Amazon become the first company to lose 1 trillion in market valuation, as it dropped from a price of 170.40 to 84 dollars as of market close 12/30.
Other smaller cap stocks had huge meltdowns, notables included Carvana (-98.02%), UpStart (-90.86%), Affirm (-89.94%), and Shopify (-74.80%).
Cryptocurrency also had an awful year: BTC (-65.29%), ETH (-68.24%). This year was very eventful for crypto, as multiple projects and exchanges collapsed. The two most notable are LUNA and FTX. CoinDesk’s Krisztian Sandor wrote a great article about Luna here, and Investopedia’s Nathan Reiff has one about FTX here. BlockFi, Celsius FTX, Three Arrows Capital, and Voyager were some of the many other crypto companies to go bankrupt in 2022. Reuters’ Dietrich Knauth gives more details about them here.
There were many reasons for the market slump this year, so let’s have a quick refresher. In early 2022, Russia invaded Ukraine, which raised global tension. This led to increases in gas prices, among other goods, which allowed the energy sector of the S&P500 to thrive (XOM is +73.59% YTD). Effects of COVID-19 were less impactful than 2021, but still affected the global economy. Inflation ran rampant in many countries, which caused less interest in investment. Trading Economics provides a compilation of current inflation data by country here. The US government also had an unprecedented amount of spending this year, which led to increased inflation.
So, what can we expect for 2023? This remains a difficult question to answer, because markets are always evolving and no one can predict the future. However, you can keep yourself informed to make the best predictions when it comes to investing. As always, watch our social media for updates, and we will continue to create more content here on our Medium page.
All information in this article is for educational purposes only and is not to be considered financial advice. Do your own research and consult a financial advisor for advice.
Financial data provided by Google Finance.
