Looking back to early 2022, after two extraordinary years market forecasts called for an ‘average’ year. Instead, we had a year marked by extremes, almost all bad: U.S. equities were down roughly 20%, the weakest performance since 2008, while bonds posted their worst performance in decades. Following last year’s trauma, many investors are once again expecting a return to normal. A cursory look at how stocks perform following down years would confirm this view. However, when you look under the surface history suggests 2023 is more likely to be another year of extremes. As most investors realize, even modest down years ... (full story)