Sinking Stocks Stuck In Sell Off Cycle?

Bad news for stock market's 2022 decent is the prices don’t historically hit bottom until the Fed, now raising interest rates, eases. Meaning, S&P 500’s worst week since early 2020 may mean sell off is still in its early stages …

Of course, the WH and President Biden are saying a recession is “NOT INEVITABLE” as the market’s sky seems to be falling on investors’ heads. According to research from Goldman Sachs cited by the WSJ, in the majority of scenarios going back to 1950, the majority of times a roiled stock market “managed to bottom out only around the time the Fed shifted [back] toward lossening monetary policy again.”

As the WSJ noted, “getting back to that point may [not only] be painful, but a relatively long time in coming. “The S&P 500 has fallen 23%” this year already “marking the worst start to a year since 1932” when THE BIG ONE HIT. Meanwhile, the Fed “just started” to tighten the Biden printed money stream by raising interest rates that had been at historical lows for, oh, seemingly forever. More rate hikes are expected in the coming months, and with each such tightening to tamp down inflation, the stock market may very well continue to be kind to its investors.

Davd Soul