2022 was a challenging year for most markets, especially stock and bond markets. The total U.S. stock market declined more than -20%, the lowest return since 2008. The taxable U.S. bond market fell -13%, its lowest return in decades. The magnitude and concurrence of these losses has prompted a questioning of traditional portfolio diversification benefits. While certainly this diversification provided limited benefit last year, dismissing this investment principle on one year’s outcome may be unwarranted. A review of diversification outcomes over time can provide perspective for investing in markets ahead.