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.
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
