How Bad Was 2022?: 31 December 2022

Vincent van Gogh representation of Twin Rocks on the Oregon Coast.

As investors we know 2022 was a poor year, particularly for stocks or equities.  Just how bad was it?  The following performance table lays out the painful news.  One does need to remember that 2021 was a stellar year so we need to accept the bad with the good.

Performance Data for 2022

The Annual IRR (third column from the left) is the annualized Internal Rate of Return (IRR) data for 2022.  Every portfolio is in the red.  This is bummer data until one brings in benchmark data.  If the iShares aggressive growth ETF AOA is used as the benchmark, then twelve (12) of the sixteen (16) portfolios outperformed the benchmark.  Had we selected the S&P 500 as the benchmark, a very common reference, then all but two of the portfolio surpassed this standard.  When viewed with bench-marking in mind, the ITA portfolios had a very good year.  Somehow that does little to salve the investing wounds of 2022.

As for data in the following table, only the Annual IRR data is for 2022.  All the other risk ratios are based on data beginning on 11/30/2020.

As I move through portfolio reviews in 2023, I think I will use 1/2/2022 as the launch point as I want to see which portfolios, if any, begin to pull out of the 2022 slump.  Another reason for using January 2023 as a starting point is tied to the launching of the four Sector BPI portfolios.