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.
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