It is a crazy time right now with wars, record fuel prices, supply shortages, rising interest rates, and the most overvalued housing market in the world (to name a few!). We could write paragraphs on how each of these would impact (or ultimately not impact!) your investments over the long-term, but instead, we thought this article did a great job of summing up some of the craziest charts out there right now. The link to the full article is below, however, we’ve summed it up here and added our comments to each item.
- Pandemic stocks are getting crushed – the darlings of the last 2 years are down over 60% – like Shopify, Peleton and Zoom.
- During one of the biggest housing booms of all time, US housing stocks down as well – over 70% – housing is cooling – about time!
- Russell 3000 stocks – a broad US index of stocks big and small are down across the board – okay – but we also own Canadian and International stocks as well!
- Stocks are getting cheaper – great! Valuations were too high last year.
- A terrible year for bonds – worst year in 35 years – good thing we don’t own a lot of bonds.
- The longer the duration, the worse the performance – a 25-year bond is down 40%! Since we don’t put long bonds in our portfolios – not a problem.
- Value stocks are doing well! Great – because we hold value stocks in all portfolio’s and they haven’t done well for awhile!
- Energy stocks are up – the reason why our Canadian stocks are not doing as bad as the US – good thing we own some!
- Financial Technology stocks – bad – but we don’t own much if any.
- Netflix, Meta and Amazon – down tremendously! Trees don’t grow to the sky forever.
- Everything is cyclical – This too, shall pass – always the best message.
- A crazy economy – more jobs than people to fill them!
- More housing starts than finishes – labour shortage and supply issues.
- Long term fixed mortgage rates in the US and Canada are going up. About time!
- The US Dollar is still very strong – strongest it’s been in awhile – the faith in the US dollar by the world is a good thing.
To view full article from Ben Carlson, “A Wealth of Common Sense” click here;
15 of the Craziest Charts Right Now