The MSCI World Index and MSCI World Information Technology Index (a proxy for high growth stocks) have reached bear market territory, falling more than 25% year to date. Most of this year’s stock market decline has come from earnings multiple contraction driven by rising inflation and interest rates. However, dividend growth stocks (represented by the MSCI World Dividend Masters Index) have shown strong resilience and outperformed both indices during this year’s market downturn with less volatility as shown in the chart and table below.