2022: Good, Bad and Ugly
AuthorDavid Fourie Stephens
2022 was a tough investing year and for most, their first experience with a bear market. 2022 was also a tough year for me and below I highlight some good things as well as bad experiences.
I was able to invest a lot this year, the most yet in fact. This is evident by the major increase in my dividends. Overall, my portfolio paid out 130% more in dividends. Dividends in my US portfolio increased by 230% which is very pleasing.
In the year, I also did not short any stock, use leverage or borrow money to invest. I seldomly invested in speculative opportunities and totally avoided cryptocurrencies which I am thankful for.
I ended the year in the negative, -16.4% year to date. Relatively speaking, this is not bad compared to the market, but you still want to have a positive return each year. This is especially true in a year of rising interest rates (making fixed term assets more favourable) and inflation (money erosion).
I completely missed that inflation would soar and that interest rate would rise rapidly. I invested in companies that didn't make a lot of sense given the macroeconomic environment. Some examples include $RH and $APPS.
As 2022 closes I think it's good to reflect on what worked well and what turned out sour. I hope 2023 is a lot better for investors.