As we progress through the second quarter, stocks have continued to move lower, and volatility is high. A strong U.S. economy and corporate earnings have been shadowed by supply chain disruptions, inflation, and geopolitical concerns. Year-to-date, both the S&P 500 and Nasdaq Composite are in a correction, but it is important to remember market dislocations are normal.
- The S&P 500 index has corrected 13% so far in 2022. The average year (since 1980) has corrected 14%.
- Since 1980, 21 years have corrected at least 10% at one point during the year, and 12 managed to come back to positive. Those 12 finished the year up 17.0% on average, so large reversals are possible.
- This is a midterm year, which historically is more volatile, with more than a 17% correction on average. The good news is stocks are up more than 30% a year off those lows.
Our team understands the stress of seeing your account balances fluctuate. Taking the appropriate amount of risk in your portfolio can present opportunities to buy high-quality companies at a discount and stay on track toward long-term financial goals. Call Shore Wealth Management today if you would like to review your financial plan.
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