Did the Market Bottom?
U.S. stocks recovered half of the bear market losses. They have never moved back to new lows after this happened.
In fact, a year later, stocks have been higher every time and up 19.3% on average.
Repeat of 1970?
U.S. stocks experienced the worst first half of the year since 1970. During 1970, the market finished the year positive after being down -24.7%.
Not saying this will happen again but it is interesting how similar 2022 has looked so far..
More Than a Decade of Underperformance
International stocks have underperformed U.S. stocks for almost 15 years. Historical data suggest that U.S. market dominance won’t last forever.
Worst Year For Bonds
The U.S. bond market is on pace for its worst year in history with a loss of 10%. However, with yields on most fixed income assets moving sharply higher this year, now could be a good time to revisit fixed income in portfolios.
Apple Making History
As of Thursday, the world’s largest company by stock market value, at $2.73 trillion, accounted for 7.3% of the index. The highest weighting for any S&P 500 company since 1980.
And that’s all for this week. Check out my Twitter (@ChicagoAdvisor) for more frequent updates. Have a great weekend everyone!
Sources and Disclaimers:
Did the market bottom? Chart from Ryan Detrick
S&P 500 2022 vs 1970 from ChicagoAdvisor data from YCharts
US vs International stock performance from JP Morgan’s Guide to the Markets
Bloomberg US Bonds Data from JP Morgan’s Guide to the Markets
Apple Largest Holding from Charlie Bilello
Stock investing includes risks, including fluctuating prices and loss or principal. This information is not intended to provide specific advice or recommendations about any stock nor is it intended to be a recommendation to buy, sell or hold any stock investment. We suggest speaking with your financial professional about your situation prior to investing.
Please consult your financial advisor regarding your specific situation. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly. All investing involves risk including loss of principal. No strategy ensures success or protects against loss. This information is not intended to be a substitute for specific individualized tax advice. The Standard & Poor’s Index is a capitalization weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries.