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Equity bulls get trimmed in 2023, hedges tighten and rearview is looking at those spiraling back up in the January rally that defied most predictions.
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While last year's 20% hit on the S&P 500 was the worst since the financial crisis, it did nothing to reduce the reward set by the buy-and-hold faithful.
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And this is evident in the S&P 500's annualized returns over the last 10 years, which are 11.7 even at last year's trough.
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Down from 16% a year earlier, the gain was still above the average of 10.6% in any decade since 1927, and beat all four long-term returns at the end of 13 bear markets.
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Jake Jolly, senior investment strategist at BNY Mellon Investment Management, said, "This is especially challenging because we are in an environment where the Fed is confronting inflation.
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Which it hasn't had to deal with in over 40 years." "It's also arguably a very significant regime change."
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And Fed policy changes last year that wiped out excesses caused by unprecedented government spending and central-bank generosity also caused the Nasdaq Composite Index to plunge 33%.
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Those who see the profit of the market as a strict policy. The Fed is also expected to reduce the pace of its rate hikes next week
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But an 11% increase at the start of the year, also driven by the condition that tech earnings would weather an economic downturn, didn't sit well with Fed officials.