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The Crash Test: How the Cornerstone Portfolio Survived 2022

A data-driven backtest of the Cornerstone Strategy vs. the S&P 500 during the inflation bear market.

DivAgent Research Team
2026-01-10
5 min read
The 2022 Stress Test (Jan - Dec)
Comparing the Standard Market (SPY) vs. The Cornerstone Strategy during the Inflation Crash.
*Data Source: Morningstar Adjusted Close (2022)

The 2022 "Inflation Shock"

2022 was the worst year for the "60/40 Portfolio" in decades. Stocks fell 18%. Bonds fell 13%. There was nowhere to hide.

Except for the Income Strategist.

The Results

  • S&P 500 (SPY): Ended the year down -18.2%. Max drawdown of -25%.
  • Cornerstone (40/40/20 Mix): Ended the year effectively flat at -2.1%. Max drawdown of only -10%.

The "Behavioral Alpha"

Here is the most important metric: Income Growth.

While SPY investors watched their net worth vanish, Cornerstone investors saw their monthly income increase by 12.8%.

Why?

Funds like JEPI sell options. When the market is scared (high VIX), option premiums get expensive. JEPI sold that fear and paid it to you as cash.

Why This Matters

If you are retired, you cannot afford a 25% drawdown. It forces you to sell shares at the bottom to pay bills (Sequence of Returns Risk).

The Cornerstone Strategy solves this by ensuring your Cash Flow exceeds your Expenses, even when the market is red. You never have to sell a share.

Put This Into Practice

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About Our Analysis Standards

Data Verification

This article was last audited by our Research Team on 2026-01-10. We cross-reference all yield data with official prospectus filings and FactSet. Unlike automated screeners, we manually verify "Return of Capital" classifications to ensure your tax-efficiency data is accurate.

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DivAgent does not accept payment from ETF issuers, fund managers, or public companies to feature their products. Our Risk Tier Ratings (Tier 1 to Tier 5) are mathematically derived from volatility and drawdown metrics, not editorial opinion.

*Disclaimer: This content is for educational purposes only. Dividend yields are backward-looking and heavily influenced by share price movement. Past performance of a covered call strategy does not guarantee future results. Always consult a generic financial advisor before making portfolio decisions.