How Conditions Today Compare to Past Equity Market Bottoms

Bridgewater

Khia Kurtenbach, Erin Miles

Article

1 Pages

Bridgewater Associates compares 2022 market conditions with past inflation driven equity bottoms, arguing that several historical ingredients for a durable turn were still missing. Despite global equities falling more than 17%, economic growth remained resilient, labor markets tight, and monetary easing had yet to begin.

Key Takeaways

More Weakness Needed: Global equities had fallen more than 17% in 2022, yet economic growth remained around potential rather than showing typical trough level weakness.
Wage Inflation Persists: Wage growth was running above 5%, keeping inflation pressure elevated even as commodity and supply chain pressures began moderating.
Easing Matters: Historical US drawdowns exceeding 10% show that significant equity declines can continue even after the Fed begins lowering interest rates.
VIEW FULL REPORT

Join our newsletter to have all of this content + Exclusive Newsletter Bonus Content delivered to your inbox every week

Related Content

Portfolio Management
A $40 Billion ETF Shuffle Helps Foreign Investors Dodge US Taxes
Sep 2026
Portfolio Management
Public to Private Equity in the United States: A Long-Term Look
Sep 2026
Markets
Europe is finally executing
Sep 2026

The information contained in this communication is of a general nature for informational purposes only, and does not constitute financial, investment, tax or legal advice. The information contained within this communication reflects the opinions of those referenced herein, and do not reflect the opinions of The Idea Farm, L.P. and its affiliates. Such opinions expressed herein are as of the date of production and are subject to change at any time without notice due to various factors, including changing market conditions or tax laws. Where data or information prepared by third parties is presented, no representation, warranty, or undertaking, expressed or implied, is given to the accuracy or completeness of such information by The Idea Farm, L.P. or any other person. While such sources are believed to be reliable, The Idea Farm, L.P. does not assume any responsibility for the accuracy or completeness of such information and does not undertake any obligation to update the information contained herein as of any future date. Any links to third party websites are offered only for use at your own discretion. The Idea Farm L.P., and its affiliates, are separate and unaffiliated from any third parties listed herein and are not responsible for their products, services, policies or the content of their website. All investments are subject to varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy or product referenced directly or indirectly in this communication will be profitable, perform equally to any corresponding indicated historical performance level(s), or be suitable for your portfolio. Past performance is not an indicator of future results.

Scroll to Top