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Q1 2022 Market Review

Stocks markets around the globe were down during Q1 2022. Bonds were also down. Attributing market movements to specific events can often be misleading. Most likely these drops have to do with two factors: 1. The Russian invasion of Ukraine, which hurt stock prices and 2. Rising interest rates, which hurt bond prices.

Over the longer term (10 years) US stocks have done far better than international developed stocks or emerging markets stocks. 2000 – 2010 was just the opposite. US stocks lost money for the entire 10 years while foreign stocks did well. Despite the recent strength of US stocks, this could happen again. It is important to stay globally diversified.

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