Market volatility is uncomfortable, and our team understands the stress of seeing account balances fluctuate. After growing accustomed to only modest stock market dips since Q1 of 2020, the recent drawdown causes us all additional discomfort. Our disciplined investment process is research-based and risk-managed. It is our goal to take advantage of these types of market dislocations and keep you on track towards your long-term financial goals.
Fears of rising rates and the Federal Reserve acting more aggressively to fight inflation has contributed to this increased volatility. We need to remember market volatility is normal. The S&P 500 has averaged three pullbacks of 5% or more per year and one correction of at least 10% per year over its long history.
Overall, the economy and corporate earnings remain strong. We expect the inflation clouds to clear as supply chain disruptions improve. We are continuing to monitor the research of our strategic partners and think the S & P 500 could reach 5,100 or beyond in 2022. We believe this pullback presents a buying opportunity of high-quality companies.
If you would like a second opinion on your investments, call Shore Wealth Management today.
Securities offered through LPL Financial. Member FINRA/SIPC