Are Things So Bad They're Good?

Are Things So Bad They're Good?

June 23, 2022

2022 has had a rough start to the year, and however, there may be some good news coming our way. On this week’s Street View video, LPL Chief Market Strategist Ryan Detrick discusses three statistics that may signal a better second half of 2022.

So far, 2022 has had one of the worst starts of the year ever. As of this recording, the S&P 500 Index is down about 21% for the year. Historically, when the first half of the year has been down over 15%, the second half was higher every single time of almost 24% on average. Another thing to think about as we come off a weak quarter is that in the past when we’ve lost 15% during a quarter, two quarters later stocks have historically been higher an average of 30% each time. Finally, over the last two weeks the S&P 500 has dropped at least 5% per week. Looking back, when other rare events have taken place, one year later stocks have been higher six out of seven times, up almost 30% on average (the only time this did not occur was 1987).

This year has gotten off to a rocky start and has many wondering what this means for investors. However, based off these statistics, there could be good news coming soon. It’s important to keep looking towards the future, being aware of the good news as well as the bad, and continue to follow the process.



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 in the podcast may not develop as predicted and are subject to change.

References to markets, asset classes, and sectors are generally regarding the corresponding market index. All indexes are unmanaged 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.

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All index data is from FactSet.

The Standard & Poor’s 500 Index is a capitalization-weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries.

All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy.

This Research material was prepared by LPL Financial, LLC. 


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