Asking for a Friend - The stock market just hit an all-time high. Why is my portfolio still worth less than what it was at the end of 2022?

January 29, 2024

Question:

The stock market just hit an all-time high. Why is my portfolio still worth less than what it was at the end of 2022?

Answer:

What a good question!

You are right that the S&P 500 just hit a new all-time high eclipsing the previous high from early 2022. That headline though only tells a small part of the story.

Many other asset classes including US Bonds, US Small Cap Equities, International Equities, and Real Estate to name a few are still below their values from the end of 2021.

Investors with well diversified portfolios have certainly benefitted from the increasing stock market and the rebound in bonds in the 4th quarter but may still not be where they were in early 2022.

That doesn’t mean you should give up on lagging asset classes. The investing climate can change quickly (especially if interest rates begin to fall) and certain asset classes will benefit.


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