No-one likes to see their shares fall but a reality check might not be such a bad thing before valuations become completely detached from earnings.īut there’s more to it than investors selling the pandemic tech theme.
Two years of soaring outperformance from US tech might have fooled us into thinking indices only go one way.
Ups and downs come in as many sizes as McDonald’s drinks and are the price we pay for the hopeful outperformance of company shares over cash in the long term. It may be that it’s the first time new investors have experienced a fall from grace so it’s worth reiterating that this is nothing new. So, which one is it? As we head into the second half of the year will the stock market recover or should we batten down the hatches and get ready for more falls? What’s happening with the stock market so far in 2022?īefore we ask when the stock market will recover, it’s useful to reflect on how we got here and remind ourselves of a few things.įirst, volatility (market ups and downs) in all its forms is a normal part of market life.
Cue instant speculation around the globe over whether it’s the start of a longer downturn or a mere blip before a stock market recovery. The US officially entered bear market territory in June after a 20% fall from its January peak.
0 kommentar(er)
