The past year turned out to be unusually eventful, with outright war, sharply rising interest rates and towering warnings of an imminent recession. It also turned a lot of accepted wisdom on its head.
The defining event of 2022, by far, was the Russian invasion of Ukraine. The financial world lost no time in condemning it as a horrifying act of aggression but, in retrospect, took far longer to realize the financial consequences. One week after the invasion, the S&P 500 was up almost 4%. At the end of the year, it was an altogether different story.