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Market Update: 07-05-22

CONSTRUCTIVE, NOT COMPLACENT: LOWERING S&P 500 TARGET

Stocks have been unable to make up much ground since the June 16 lows, with a bear market rally amounting to only around a 4.3% gain in the S&P 500 Index since then (as of July 1). After the more than 6% rally the week of June 24 and the increasing optimism that came with that bounce, stocks pulled back again last week—the 11th down week for the index in the past 13 weeks. While we acknowledge that a V-shaped recovery is probably not in the cards and prior valuation targets no longer appear achievable, we remain constructive on equities for the second half, but not complacent.

NOT OUT OF THE WOODS BUT SOME ENCOURAGING SIGNS

Clearly markets do not yet believe we’re out of the woods as debates about whether inflation has peaked continue while the Federal Reserve (Fed) stands ready to aggressively hike its target interest rate over the next few months (at least) while shrinking its bloated balance sheet.

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Susan Jerris

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Jerris

LPL Registered Principal 
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Anthony Roble

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Roble

LPL Registered Administrative Assistant
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Esperon

Administrative Assistant
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