The 2022 that has just ended will be remembered as a terrible year for the financial markets. Starting with the two investments that are not lacking in any portfolio: shares and bonds. Rare gains: gold, the dollar at the top for seven years and oil. Based on stock market data updated to 29 December, the Ftse Mib in Piazza Affari recorded a drop of 12% since the end of 2021. This is the worst annual performance since 2018, when the index fell by 16.1%. second worst in the last ten years and the seventh worst since 2000. The Ftse All Share, on the other hand, recorded a 12.9% drop in 2022 while the Star segment fared even worse, down by 27.7%, and the Ftse Italia Growth with a -19.3%.
The causes of this situation are many. Also alarming the markets in the first part of the year was the escalation of the crisis between Ukraine and Russia, which culminated on 24 February, the day on which the invasion by Moscow began. From inflation back to record levels, which have not been seen for 20 years, to the sharp rise in raw materials and energy sources. Other factors contributed to complicate the picture, from the difficulties encountered in the supply chains, to the new monetary policy tightening put in place by the central banks. But what does this mean for investors? Let’s see some examples that help us better understand the repercussions of this complicated year on the savings of those who bet on stocks and bonds.
Those who start 2022 have invested 10,000 euros in Italian government bonds today find themselves with 1,688 euros less in their account. Things aren’t much better for those who have decided to focus on international government bonds who find themselves with around 8,811 euros compared to an initial investment of 10,000. The losses are also similar for those who have opted for the blue chips, i.e. the shares of reliable, financially stable and consolidated publicly traded companies, whose performance has collapsed by more than 13% from the beginning of 2022 to today. The situation is even worse for those who bet on US shares that lose more than 14%. The 10,000 euros invested at the beginning of 2022 in this case today have become around 8,580 euros. The same goes for Eurozone shares (-14.4%).
To record the greatest losses are those who have bet on tech shares, which have had a collapse of almost 30%. Those who bet on the giants of Big Tech today find themselves with around 7,128 euros in their portfolio from the 10,000 invested. Among the worst performances there is also that of UK government bonds (-28.6%), closely followed by Italian Mid Cap shares (-21.0%). Anyone who has invested 10,000 euros in these shares today risks ending up with 7,900 euros.
Only those who bet on oil are smiling, thanks to the extraordinary performance of Brent (41%), which ends up with 14,101 euros in the portfolio, and on gold. In this case the gain is lower but at least there are no losses (the 10,000 euros have become around 10,600). Even those who bet on the dollar can breathe a sigh of relief and find themselves with around 10,650 euros and the Swiss franc. In this case, the 10,000 euros became around 10,490.
Francesca Monti contributed to this article.
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Savings, “the black year”: this is how much those who invested 10 thousand euros a year ago have today
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