The chart of the week looks at the historical 12-month drawdown of a 60% stock, 40% bond portfolio. Two key points are to be made. First, the drawdown that we saw in 2022 of more than 25% was one of the worst of all-time, dating back to 1900. This is not a common occurrence and it has only happened to this degree three times in the last 70 years. Second, drawdowns happen very often. Even with a balanced portfolio such as this, yearly drawdowns will occur and should be expected. Invest accordingly.

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