The downturn in the stock and bond markets continued during the second quarter of 2022. Although consumer sentiment may seem bleak at times, we think it’s very wise for all of us to “zoom out” and look at the long-term returns on page 4 of our Quarterly Market Review. The US stock market has still averaged more than a 10% increase per year when looking at the last 5 years.
While we can’t predict the future, we do know the market often corrects quickly and at unexpected times. Sitting tight, sticking to your financial plan, reducing your intake of financial news, and continuing to live your life to the fullest are all recipes for weathering the storm. As our clients can attest, we often say it’s not a matter of if, but a matter of when the next downturn or recession will take place. This is a normal part of the investment process and one that we account and plan for in your investment and retirement strategies.