To date this year, both the U.S. stock and bond markets have posted significant declines not seen since the way back to 1969, according to data from BlackRock.
The S&P 500 is down nearly 24% year-to-date, and the Bloomberg U.S. Aggregate Bond Index has surrendered about 16%. Should both indexes finish the year in the red, it would be the first time that has happened in decades.
“Normally, stocks and bonds have an inverse relationship,” says Kevin Brady, a certified financial planner and vice president at Wealthspire Advisors in New York City. “Historically, bonds have had a ballast effect when stocks go down. That’s not happening this year.”
With losses piling up in the two most common asset classes for retail investors, “there haven’t been many places to hide,” Brady says…
Rapid inflation in the mid-1960s forced the Federal Reserve to hike interest rates in an effort to cool the economy, much like what’s happening today. The economy tipped into recession in 1969, which marked a year of negative returns for both stocks and bonds.
Stock investors: Buy investments on sale.
As for stock investors, a 20% decline isn’t all that out of the ordinary… In the 10 times drawdowns of 20% to 40% have occurred since 1945, the market has returned to its peak after 27 months, on average.
In other words, this happens in the stock market all the time… Sticking with your long-term strategy and investing at a consistent clip ensures you’ll be adding investments when they’re trading at lower prices.
MacDailyNews Take: Take the AAPL discounts when they present themselves, especially during dips after obvious “iPhone production cut” FUD that mention Apple cutting one model, but fail to mention that the company is simply adjusting the mix toward higher-end (higher revenue) Pro models. Use these artificial, baseless dips to generate profits.
Apple is simply fine tuning the mix towards higher-end, higher-priced (read: more revenue) iPhone Pro models. As we predicted (see link). Use these predictable bits of FUD news to make money.https://t.co/CNxTDI6N9z
— MacDailyNews (@MacDailyNews) October 18, 2022
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