What happens to the stock market after a 20% down year? It's complicated

  • 📰 CNBC
  • ⏱ Reading Time:
  • 20 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 11%
  • Publisher: 72%

United States News News

United States United States Latest News,United States United States Headlines

Now for the good news: The market tends to bounce back in the year following losses — but there are always caveats.

It's been a rough year. The S & P is on the cusp of a rare 20% annual decline. It's unusual for two reasons: It's a down year and the size of the decline . First, the bad news: this would be the fourth worst year for stocks since 1945, behind only 2008, 1974 and 2002. Wall Street's worst years 2008 down 38.5% 1974 down 29.7% 2002 down 23.4% 2022 down 20%? Source: CFRA Research Now, the good news: the market tends to bounce back in the year following losses.

What should investors buy after a losing year? Should investors buy last year's winners or last year's losers? Stovall says the historic winning strategy is different following down years. "Following up years, history says that investors should stick with the four best-performing sectors, and 'let your winners ride' into the new year," Stovall said.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

It will stop 30% more in 2023 so get ready for it

Can we just admit that TINA and FAANG were bad ideas and not based on reason

CNBC, trying to explain away, the pain in the Stockmarket and it just don't add up, if you're in the know. 😎 The Stockmarket in Mine!

$CEMI. 'BUY/COVER UNDER .25' 10 BAGGER IN 2023!!! Market Cap: $7.3M Cash On 10/1: $18.3M Potential takeover target: $AMZN? $DGX? $AZN? $TAK? Point of Care/Rapid Diagnostic Market Over $75 billion by 2027.

😂

CNBC, Called me the 10T trillion dollar Man because that's what came out of the Stockmarket in 2022 trying to hold down TQQQ and you know who😎

I’m sure for the first time ever the stock market doing poor “is actually a good thing, and here’s why”

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 12. in US

United States United States Latest News, United States United States Headlines