The bears are running through the financial media, with the 5% drop in the S&P 500 over the last week. I saw a headline on Friday that one of JP Morgan’s top analysts was predicting a 20% stock market sell-off. Another Wall Street ‘expert’ – John Hussman – believes that we could see a 70% market crash, led by sky-high tech stocks.
The issues are many: sky-high corporate valuations, rapidly rising inflation, geopolitical instability (Russia/Ukraine), and record pandemic cases/concerns over new variants. This cartoon from Steve Breen at the San Diego Union Tribune captures it well …
If a deep downturn does come to fruition, I’m thinking we are in pretty solid shape with our plans. We are good with our cash buffer, continue to be debt-free, and just invested more $ in real estate with our new rental townhouse. Perhaps a market correction would also drive some change in Washington DC and improve our long-term prospects.
Where do you think the stock market will finish 2022?
Do you feel well positioned for the changes we are seeing?
Image Credit: Pixabay