The worst year for US equities and bonds since 1932 as the “everything bubble” explodes
While the cryptocurrency markets have taken a beating in 2022, neither have US equities, bonds, or real estate.
It has been a difficult year for investors, and not only crypto investors, with United States (U.S.) bonds enduring their worst year in decades and U.S. equities falling about 20% since the beginning of 2022.
Return on investment for US equities and bonds from 1871 to 2022. The Financial Times is the source. Similarly, tech stocks, which some believe correlate with the price of cryptocurrencies, have not had a fantastic year.
An index that tracks the performance of U.S. corporations in the sector lost 35.76 percent during the course of the year.
Yahoo Finance reports that the share values of well-known technology companies such as Netflix, Meta, Zoom, Spotify, and Tesla have declined by between 51% and 70% during the last few years.
Even the “safe as houses” real estate industry has begun to show indications of distress, with the Federal Housing Finance Agency reporting that U.S. home prices were unchanged in September and October.
These stock and industry reductions may help put the current crypto winter into perspective, given that the whole crypto market value went from $2.25 trillion to $798 billion over the course of the year, a decrease of 64.5%, and that crypto millionaires suffered enormous losses.
Throughout 2022, many crypto crises have occurred, including the failures of FTX, Celsius, and Three Arrows Capital, as well as the Terra network.
According to a tweet sent on the 30th of December by financial expert Andreas Steno, “every asset class” is down drastically in 2022, and real estate will shortly follow.