2022 has been a less than positive year for investing. It’s no secret that both the stock and bond markets are in significant negative territory year-to-date. What does this mean?
It’s certainly unsettling to see your account statements compared to last year and it may get worse before it gets better. What I can tell you is that we’ve been in a similar situation many times before. The S&P 500 has pulled back more than 13% since the start of the year and bonds (which often help against stock market downturns) have also been negative for the year.
We’ve all heard the constant news about inflation, rising interest rates, supply chain problems, war, etc… Bad news sells. What we don’t hear so much is the good news about improving employment, earnings growth, and other positive indicators in the economy. Every few years we have a similar pullback to what we’re experiencing but it can get lost in the news since it’s not coinciding with inflation and interest rate hikes that we haven’t seen in decades. Often, when the S&P 500 has been down double-digits, the index rallied back to end the year positive. Don’t give up hope.
Patience and a long-term perspective are still foundational to a good investment strategy. I’ve talked to so many of you since the start of the year and you’ve been reminding me of the very same things.
It’s such a joy to work with you!
Please contact me if you have questions or concerns and we can see what might be options for you and your particular situation.
Content in this material is for general information only and 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 assures success or protects against loss.
The economic forecasts set forth in this material may not develop as predicted and there can be no guarantee that strategies promoted will be successful.