Do you remember Paul Harvey? If you don’t remember life before the internet skip this paragraph. But those of a certain age may remember his daily radio program – at the end of each broadcast he would say in his distinctive radio voice: “And now you know…the rest of the story”.
Earlier this month you likely saw the headlines:
The first six months of 2022 saw the S&P 500 decline 21%.
The S&P 500 is a group of the 500 largest stocks in the United States.
The last time the S&P 500 fell this much in the first half of the year was over 50 years ago, in 1970, shown here:
What do you think happened in the second half of 1970?
The 2nd half of 1970 saw a rebound of 29.1% and the year ended with a 4.0% gain!
As Paul Harvey would say, “And now you know…the rest of the story”.
What will the 2nd half of 2022 bring for the stock market?
I don’t know -– and neither does anybody else.
But the point is, the second half could see a rebound.
In fact, it wouldn’t be unusual.
According to the WSJ:
What I do know is this: stock market gains, when they arrive, are unpredictable and can be very fast.
When it comes to accumulating wealth in the global capital markets – You must be present to win!
Save, invest, repeat, and stay the course.
*The graphics are from Dimensional, I mutual fund I use to invest my family’s and my clients’ money. I receive no compensation from them.