2022 is over at last, and I am sure many have been looking forward to be closing the books for this eventful year and again start focusing on what lies ahead instead.
It has been one of those extremely rare years where three of the major asset classes - stocks, bonds, and gold - all have a bad year at the same time. This, of course, has had a negative impact also on the All Seasons Portfolio. While it is disappointing, this is an opportunity to train humility and remember that no strategy is always going to perform every year. Rather, over a cycle, we will witness good excess return over cash at lower volatility than the stock market.
At the time of writing this post (which comes out a bit late) 2023 has already commenced much stronger, and we are out the gates at a very good pace. While it is far too early to count the chickens before they hatch, at least we are getting some respite from the sour emotions of yesteryear.