What a month! The stock market had its worse first half since:
- 1970 for the S&P 500
- 1962 for the Dow
- Ever for the Nasdaq
It’s still firmly in bear market territory – and I believe it has farther to fall. There are real-world issues that need solving that no amount of interest rate hikes from the Fed can touch. Namely supply chain backups, geopolitical tension from the Russia-Ukraine invasion, and lower company earnings and forecasts from too many of the wrong products and a tight labor market.
Interest rate increases are affecting home sales, and certain sectors are seeing hiring slowdowns (particularly tech). So how’s it affect me, the average investor?
Well, I contributed $2,000 to my 401k last month, but my overall 401k balance is only up $146. That means my money is losing value in real-time. It also means I’m getting more stocks at a lower cost basis. Instead of lowering my contributions during this volatility, I opted to increase them.
And the accounts I don’t touch (my Roth IRA that’s maxed for the year and my traditional IRA) are negative since last month.
The average bear market lasts for under a year, but the average bull market lasts nearly three years and has much higher highs than the bear market’s lowest lows, percentage-wise.
So I’m staying the course, sticking to my plan – and I have huge news I’m finally ready to share! Ahhhhh!!!!