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‘Everything Bubble’ Bursts: Worst year for US Stocks and Bonds Since 1932

While the crypto markets have taken a beating in 2022, the outlook for US stocks, bonds, and real estate hasn’t been much better.

It’s been a rough year for investors, not just those in crypto, with US bonds having their worst year in centuries and US stocks falling nearly 20% since 2022 began.

According to a Financial Times report, as of Nov. 30, a traditional portfolio comprised of 60% stocks and 40% bonds would have seen its worst performance since 1932, when the United States was in the grip of the Great Depression.

Meanwhile, tech stocks, which some believe have a correlation with cryptocurrency prices, have not fared well this year.

An index that tracks the performance of companies in the industry in the United States lost 35.76% last year.

Household tech behemoths like Netflix, Meta, Zoom, Spotify, and Tesla have all had particularly difficult years, with share prices falling by 51% to 70%, according to Yahoo Finance.

Even the “safe as houses” real estate sector has begun to show signs of distress, with the most recent Federal Housing Finance Agency data showing that U.S. house prices remained stagnant in September and October.

These stock and sector declines may help put the current crypto winter into context, as the total crypto market cap fell from $2.25 trillion to $798 billion during the year, a drop of 64.5%, and crypto billionaires suffered massive losses.

Among the crypto crises that occurred in 2022 were the bankruptcies of FTX, Celsius, and Three Arrows Capital, as well as the collapse of the Terra network.

 

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