TLT - 2023 financial overview: Bitcoin shines banks stumble private equity climbs
2024-01-01 09:02:00 ET
With 2022 now in the books, exactly what do the books show? Here's a look at investments related to the financial, real estate and crypto segments.
Not surprisingly, bitcoin ( BTC-USD ) surged the most in the past year, more than doubling (+156%), when comparing two cryptos and 20 indexes and ETFs representing a variety of sectors and investments. But the digital asset is also volatile. Note that the world's most popular token dropped 64% in the previous year, ending on a sour note with the collapse of FTX.
Among the three major U.S. stock averages, the tech-heavy Nasdaq Composite ( COMP.IND ) climbed 43% in 2023, overpowering the S&P 500's 24% increase and the Dow Jones Industrial Average's 14% improvement. Interestingly, the Russell 2000, made up of small-cap companies, gained 15%, edging out the DJIA.
Banks fared the worst among subsectors, as higher rates reduced the value of their securities portfolios. With weaker balance sheets and the drop in bitcoin late in 2022, customers rushed to withdraw their deposits from crypto-exposed Silicon Valley Bank, Silvergate Bank, and Signature Bank, leading to their collapses. The rescues of Credit Suisse and First Republic Bank by larger rivals soon followed as their nervous depositors clamored for their funds.
By financial subsector, private equity and consumer finance performed the strongest, rising 33% and 27%, respectively.
In fixed income investments, high-yield corporate bonds did the best, followed by investment-grade corporate bonds. The U.S. dollar, however, declined slightly from lofty levels.
| 1M |
| 6M |
| Year |
| S&P 500 Index |
| ( SPX ) |
| 4.6% |
| 7.2% |
| 24% |
| Nasdaq Composite Index |
| ( COMP ) |
| 5.3% |
| 10% |
| 43% |
| Dow Jones Industrial Index |
| ( DJI ) |
| 6.4% |
| 10% |
| 14% |
| Russell 2000 Index |
| ( RTY ) |
| 12% |
| 7.3% |
| 15% |
| Bitcoin |
| ( BTC-USD ) |
| 12% |
| 39% |
| 155% |
| Ether |
| ( ETH-USD ) |
| 11% |
| 18% |
| 91% |
| US Dollar Index |
| ( DXY ) |
| -1.9% |
| -1.5% |
| -2.1% |
| Financial Select Sector SPDR ETF |
| ( NYSEARCA: XLF ) |
| 5.9% |
| 13% |
| 9.9% |
| Real Estate Select Sector SPDR ETF |
| ( NYSEARCA: XLRE ) |
| 8.5% |
| 6.8% |
| 8.5% |
| KBW Nasdaq Bank Index |
| ( BKX ) |
| 14% |
| 20% |
| -4.8% |
| KBW Nasdaq Regional Banking Index |
| ( KRX ) |
| 16% |
| 25% |
| -4.0% |
| S&P 500 Life & Health Insurance Index |
| (SP500-40301020) |
| 3.8% |
| 16% |
| 1.1% |
| S&P 500 Property & Casualty Insurance Index |
| (SP500-40301040) |
| 0.6% |
| 18% |
| 9.3% |
| S&P 500 Reinsurance Index |
| (SP500-40301050) |
| -11.37% |
| 4.1% |
| 6.7% |
| S&P 500 Consumer Finance Index |
| (SP500-402020) |
| 16% |
| 9.5% |
| 27% |
| S&P Indices Listed Private Equity Index |
| ( SPLPEQTY ) |
| 9.5% |
| 22% |
| 33% |
| iShares 20+ year Treasury Bond ETF |
| ( NASDAQ: TLT ) |
| 6.8% |
| -2.8% |
| -0.7% |
| iShares 1-3 Year Treasury Bond ETF |
| ( NASDAQ: SHY ) |
| 0.4% |
| 1.2% |
| 1.1% |
| SPDR Bloomberg 1-3 Month T-Bill ETF |
| ( NYSEARCA: BIL ) |
| -0.5% |
| -0.4% |
| -0.1% |
| ishares iBoxx $ Investment Grade Corporate Bond ETFs |
| ( NYSEARCA: LQD ) |
| 3.6% |
| 3.1% |
| 5.0% |
| iShares iBoxx $ High Yield Corporate Bond ETF |
| ( NYSEARCA: HYG ) |
| 2.0% |
| 3.6% |
| 5.1% |
| iShares National Muni Bond ETF |
| ( NYSEARCA: MUB ) |
| 1.7% |
| 1.8% |
| 2.7% |
More on the S&P 500, XLF, etc.
- Weekly Commentary: 2023 Year In Review
- The Dual-Control System, Instant Trading, And Pulse Of Bull Plateau
- XLF: The 2024 Financials Sector Outlook Is Concerning
- Burford, BGC Group rise, crypto stock rally falters in week's financial movers
For further details see:
2023 financial overview: Bitcoin shines, banks stumble, private equity climbs