Market Commentary | July, 2022
A monthly review of what’s been happening in the investment world. This is for educational purposes only and should not be considered advice, consult a professional before making any investment decisions.
WHAT’S HAPPENING.
When it comes to stocks, I mostly follow three different styles:
Large Cap Stocks (SPY). The S&P 500 represents 500 of the largest companies in America.
Tech Stocks (QQQ). The NASDAQ 100 represents 100 of the largest non-financial companies in America.
Hypergrowth Stocks (ARKK). The ARK Innovation Fund invests in disruptive companies that have the potential to change the way the world works through technology.
LAST MONTH.
After a terrible June, we saw a strong rebound for stocks in July.
YEAR-TO-DATE.
Each index remains in negative territory for the year, but stocks have been trending higher since mid-June. Let’s hope the worst of this is behind us.
LAST 3 YEARS.
Always remember to zoom out and look at the big picture. Despite the poor performance in 2022, the S&P 500 and NASDAQ are still positive over the past three years. ARK has been a roller coaster, which should be expected from hypergrowth stocks.
THAT’S INTERESTING.
See below for a collection of the best investment content I stumbled upon recently.
A STRONG MONTH. The NASDAQ just had one of its best months ever. This chart shows what has happened to stocks after a good month…sometimes the next five years are great, other times they stink.
BAD 6 MONTHS. Contrast the first chart with this one, it shows how stocks performed after a poor 6 month period. If you have a time horizon of 5+ years, today could be a nice time to buy stocks.
DO NOTHING. A good reminder that even though there will always be a good reason to sell your stocks, history tells us it’s a mistake.
MORTGAGE PAIN. The cost to buy a house today is almost double what it was only two years ago.
BEAR MARKET RALLY. Just because stocks performed well for a month doesn’t necessarily mean the bear market is over. Some of the most painful periods to invest had a number of strong relief rallies during the broader decline.