It’s been a rough year for markets as we edge closer to the halfway point of 2022 but it may not be all bad news. There is some upside to bear markets.
The S&P 500 exceeded a 20% loss year to date before recovering slightly last week. The Nasdaq did the same with a 30% loss.
Of course, the losses should not be surprising at this point. The bloodbath in certain Nasdaq stocks has been well documented, which explains why its performance is worse than the Dow and S&P 500.
But it’s not all bad news for investors. Lower stock prices bring lower valuations. And, broadly speaking, lower valuations lead to higher returns going forward. Continue Reading…