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LPL Research: Let's Talk About the Sell-Off

LPL Research: Let's Talk About the Sell-Off

April 28, 2022

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.


This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors or will yield positive outcomes. Investing involves risks including possible loss of principal. Any economic forecasts set forth may not develop as predicted and are subject to change.

References to markets, asset classes, and sectors are generally regarding the corresponding market index. Indexes are unmanaged statistical composites and cannot be invested into directly. Index performance is not indicative of the performance of any investment and do not reflect fees, expenses, or sales charges. All performance referenced is historical and is no guarantee of future results. All market and index data comes from FactSet and MarketWatch.

Any company names noted herein are for educational purposes only and not an indication of trading intent or a solicitation of their products or services. LPL Financial doesn’t provide research on individual equities. All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy.

U.S. Treasuries may be considered “safe haven” investments but do carry some degree of risk including interest rate, credit, and market risk. Bonds are subject to market and interest rate risk if sold prior to maturity. Bond values will decline as interest rates rise and bonds are subject to availability and change in price.

For a list of descriptions of the indexes referenced in this publication, please visit our website at

This Research material was prepared by LPL Financial LLC.

Securities and advisory services offered through LPL Financial (LPL), a registered investment advisor and broker-dealer (member FINRA/SIPC).