Making sense of the markets this week: January 8, 2023 + MORE Jan 6th

US bank Silvergate hit with $8bn in crypto withdrawals  BBCSilvergate Sinks by Record on Deposit Run, Staff Layoffs  Bloomberg Markets and FinanceCrypto Panic at Silvergate Spawns a New Breed of Bank Run  BNN BloombergSilvergate Bank Suffers Run on Deposits as $8.1 Billion is Withdrawn – Will it Go Bust?  CryptonewsHedgeye Risk Management | [FLASHBACK] Silvergate $SI: “This Stock Is Dogsh!t. It Needs To Be Called Out Just Like FTX.”  HedgeyeView Full Coverage on Google News

Kyle Prevost, editor of Million Dollar Journey and founder of the Canadian Financial Summit, shares financial headlines of the week and offers context for Canadian investors.

Putting 2022 into context (it was pretty bad)

What caught my eye this week? This chart from Ben Carlson:

Source: A Wealth of Common Sense

When you combine those U.S. stock market returns with the -13% return on the Bloomberg Aggregate Bond Market Index (by far the worst in 40-plus years), you’re looking at some historically awful returns for the largest capital market in the world. In fact, in the context of the traditional balanced 60/40 portfolio (60% stocks and 40% bonds), 2022 was the third worst year on record for American investors.

Take note of 2022’s line (third from the top):

Source: A Wealth of Common Sense

Canadian investors experienced a gentler year with the S&P/TSX Composite Index posting a loss of 8.5% in 2022. And the Solactive Canadian Select Universe Bond Index shows that Canadian bonds were down about 11%…