Everyone Got the Markets Wrong This Year: Opinion's Scanlon

The year 2022 defied traditional investing norms, with stocks and bonds declining together, tech companies adjusting to rising interest rates, and housing markets facing high mortgage rates. Private funds like Blackstone encountered withdrawal issues, highlighting the need for market realism. The strengthening dollar added global economic pressure. Safe, stable investments outperformed, and 2023 is expected to continue with uncertainty, favoring quality fundamentals in stocks and bonds.

What unexpected event occurred with the 60/40 portfolio in 2022?

• It was unaffected by market changes.

• It became obsolete as both stocks and bonds declined.

• It outperformed all other investment strategies.

• It only affected tech stocks.

How did rising mortgage rates impact the housing market in 2022?

• They caused a decrease in housing prices.

• They led to a housing market winter with volatile prices.

• They had no significant effect on the market.

• They made it easier for new buyers to enter the market.

What issue did Blackstone's real estate fund face in 2022?

• It experienced a significant increase in value.

• It was forced to limit withdrawals due to high demand.

• It had too many new investors.

• It was unaffected by market changes.

Which type of investments performed well in 2022?

• Speculative crypto assets

• Emerging market stocks

• High-risk tech stocks

• Safe and boring investments

What is the expected investment strategy for 2023?

• Prioritize quality fundamentals and stable investments

• Avoid all stock and bond investments

• Invest heavily in tech startups

• Focus on speculative and high-risk assets