Midyear Stock Market Checkup from Ross B Hansen of San Elijo Hills

Midyear Market Checkup

With just a few days away from the end of June, stocks gained some ground last week but remain down nearly 20%, their worst first six months of any year since 19701. Aggressive central-bank tightening, concerns around inflation, and the effect of these two factors on growth have led to a rapid adjustment in interest rates, valuations, and sentiment. We think that the economy will continue to slow in the quarters ahead, reflecting the lagged impact of policy tightening. However, the year-to-date sell-off in both stocks and bonds has improved future returns for long-term investors. We’d offer the following perspective on how the economy, stocks and bonds are shaping up at the midyear point and what could be in store for the second half.

Source: Morningstar, Edward Jones as of 6/23/22. Stocks represented by the S&P 500, bonds by the Bloomberg Barclays U.S. aggregate bond index, and commodities by the Bloomberg Commodities index. Past performance does not guarantee future results. Market indexes are unmanaged and cannot be invested into directly.
The graph shows returns for stocks, bonds and commodities through the first half of this year, and how they compare with the returns of an average year

READ MORE of the mid-year market update

Best Regards,
Ross B Hansen of San Elijo Hills