Second Quarter Market Commentary
Repositioning and repricing for the future is what the market is in a constant process of doing. Reacting and adjusting to inflation, economic, and corporate data along with digesting the corresponding FED policy responses has all lead to significant volatility this year. In fact, the level of this volatility has been nothing less than record breaking so far this year. As they say, records are meant to be broken, but we obviously prefer not to be breaking such ominous new ground.
On January 3rd, the S&P 500 topped out at 4796. As of the close of the second quarter, the S&P 500 stood unsteadily around 3785. This represents a 21% retracement from its high-water mark at the beginning of the year. On June 13th, the S&P 500 (and several broad market indices) officially entered bear market territory (as represented by a decline in value of 20% or more). Now add that fixed income is having its worst year ever and it won’t surprise you to hear that 2022 is off to one of the most difficult starts we have seen in decades.
