Investors are more than happy to close the book on 2022, the first time in four years the S&P 500 closed with a loss and the worst performance in over a decade.
But there is reason to be hopeful about the coming year because the S&P 500 has only rarely ever produced two consecutive years of losses. The bursting of the dot-com bubble in 2000 actually led to three straight years of negative returns.
But you have to go all the way back to the 1970s to find the next time the broad market index was down for two years running.
That’s no guarantee this year won’t be a bummer again, but the odds are in favor of stocks bouncing back in 2023, and after 14 consecutive months of decline, growth stocks might just find themselves in the driver’s seat once more.
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