ear Friends,
Summer is finally here, but 2022 is still shaping up to be one of the worst years for investors ever. That’s the bad news. The good news is, the year isn’t over and we have several reasons why we believe the bulls shouldn’t throw in the towel just yet.
Here are three reasons why investors should remain optimistic as we enter the second half of 2022.
1) Bad Starts to A Year at Halftime Don’t Always Mean More Trouble
The S&P 500 Index is down 21% for the year, which would be the worst first-half of any year since 1970. As bad as that has been for investors, the good news is previous years that were down at least 15% at the midway point of the year saw the final six months higher every single time, with an average return of nearly 24%.
As the table shows below, big drops to start a year tend to see big bounces back. Although most investors probably don’t feel like that is possible in 2022, just remember history says a surprise bullish move is possible.