Stocks Cross the Bear Market Threshold
The S&P 500 stock index is now officially in a bear market, having fallen more than 20% since the peak on January 3, 2022. The issues facing investors in coming quarters are daunting, yet these too shall pass. While not minimizing the risks ahead, we note a number of positive factors that lead us to believe that if a recession is forthcoming, it is likely to be short and shallow. We outline several adjustments we’ve made to client portfolios to reflect the new economic reality, and we resist the temptation to make wholesale changes based upon short-term thinking.
June 15, 2022
