You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating indiv idual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Profit from the Pros By Kevin Matras Executive Vice President
Stocks End Lower, Capping Off The Worst First Half In More Than 50 Years
Stocks closed lower yesterday, lower for the month, lower for the quarter, and lower for the first half of the year.
In fact, regarding the latter, it was the worst first half performance in more than 50 years for the S&P, falling by nearly -21%, making it the worst start since 1970.
That time was also a period of high inflation like we're experiencing now.
Interestingly, the second half of that year saw the S&P up 27%.
Of course, that does not mean that's how it will go for the back half of 2022.
In fact, since 1957, negative first half performances had just as much of a chance for a negative back half performance as it did a positive one.
But that being said, it's important to look at where we are and what could be coming down the pike.
And on that note, I like our chances. Especially given that we have the strongest labor market in decades (unemployment is near a 50-year low, while there's literally millions more jobs available than there are unemployed people to fill them).
Moreover, the Fed is forecasting full-year GDP to come in at 1.7% this year, and 1.7% again next year. And St. Louis Fed President, James Bullard, in a recent interview, said he does not see a recession this year or next. And that he sees a "pretty good second half," driven by "strong consumption this year."
So we shall see.
In the meantime, stocks are down, but off their lows.
And PCE inflation for May, per yesterday's Personal Income and Outlays report, came in at 6.3% y/y, which was even with April's reading. And the Core PCE Price Index (which excludes Food & Energy) slipped to 4.7% y/y vs. last month's 4.9%.
The market has plenty of work to do.
And with valuations at the lowest level in more than 2 years, there's plenty of bargains out there.
Let's hope the market in the second half follows the same trajectory as 1970.
And today is day one.
Note: the markets will be closed on Monday, July 4th, for Independence Day.
So we've got a 3-day long weekend ahead of us.
Trading will resume as normal on Tuesday.
Until then, have a profitable day today.
And enjoy the 3-day, 4th of July weekend.
See you on Tuesday,
Executive Vice President, Zacks Investment Research
Catch breaking news on your stocks and funds at a glance, including timely recommendation changes ... Zacks Ranks ... Industry Ranks ... earnings announcements ... earnings estimate revisions ... and more. And now you can screen for new stocks to improve portfolio performance.
Here are 5 stocks added to the Zacks Rank #1 (Strong Buy) List today. Read More »
Download our app for convenient on-the-go access to even more—daily and weekly newsletters published by Zacks experts, proprietary research and tools, and Portfolio Tracker on Zacks.com.
Visit Success Stories to hear how Zacks research, tools and portfolios help our members outperform the market.
Get all of our market insights and much more when you connect with us.
This free resource is being sent by Zacks.com. We look for investment resources and inform you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research is not a licensed securities dealer, broker or US investment adviser or investment bank. The Zacks #1 Rank Performance covers the period beginning on January 1, 1988 through May 2, 2022. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank #1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed above.
Zacks Emails If you would prefer to not receive future profit-producing emails from Zacks.com the primary purpose of which is the commercial advertisement or promotion of a commercial product or service, then please click here and confirm your request. If you have trouble with the unsubscribe link, please email firstname.lastname@example.org.
Zacks Investment Research 10 S. Riverside Plaza, Suite 1600 Chicago, IL 60606
Due to inactivity, you will be signed out in approximately: