Feeling a little seasick? It’s not just you. Besides turning in a historically ugly performance over the first four months of 2022, stocks have been uncommonly choppy.
Take a look at the tape: Through Friday, the S&P 500 SPX had finished with a daily gain or loss of more than 2% 12 times so far in 2022 — 6 up and 6 down. That’s compared with just 7 up or down moves of that magnitude in all of 2021, according to Dow Jones Market Data. Look no further than the market reactions to results this past week from Facebook parent Meta Platforms Inc. FB and Amazon.com Inc. AMZN .
The Fed, which delivered a quarter percentage point interest rate increase in March, is expected to deliver a rare half-point hike to the fed-funds rate when policy makers conclude a two-day meeting on Wednesday. And investors have penciled in the possibility of more outsize rate increases to come, along with expectations for an aggressive wind-down of the central bank’s balance sheet.
Investing is all about being against yourself, your interests and your emotions. Your journey won't be one of heroism.