Your Money
You have probably already seen the headline: Stock Markets Post Worst First Half Since 1970. Indeed, rising inflation and interest rates fueled a constant rout across almost all markets to start the year, including a 21% drop in the S&P 500. Volatility will likely continue until we get better inflation data and a clear direction on the money supply. The best news we could get is that the Fed starts talking less about short-term interest rates and more about where it would like to see growth in the money supply during the next few years.
On the bright side, when the S&P 500 has fallen at least 15% in the first six months of the year, as it did in 1932, 1939, 1940, 1962, and 1970, it has risen an average of 24% in the second half.
- Broad Market (S&P 500): - 16.1% 2Q | -20.0% YTD
- Small Companies (Russell 2000): -17.2% 2Q | -23.5% YTD
- International Stocks (EAFE): -14.3% 2Q | -19.2% YTD
- Emerging Markets (MSCI EM): -11.4% 2Q | -17.6% YTD
- Bonds (Barclays Agg): -4.7% 2Q | -10.4% YTD
Personal video statements will begin going out next week.
Stock Markets Post Worst First Half of a Year in Over Five Decades
by Akane Otani
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