Financial News and Insights | Sanderson Wealth Management

May 2022 Market Update | Sanderson Wealth Management

Written by Justin Sanderson, MBA, CFP®, CIMA® | Jun 3, 2022 1:27:35 AM

The U.S. stock market is near bear territory, giving investors every right to feel anxious. With the S&P 500 down 15%, the first half of 2022 has had a rough start thus far. Making matters worse are the bond market and foreign markets also down materially this year.

So, what’s the cause of this slump? Unfortunately, there are many factors.

The grimmest cause is the Russo-Ukrainian conflict. Any war wreaks havoc on the market, and this is no different, especially since it’s lasting much longer than Putin intended. Add that to big drops from companies like Etsy, PayPal, and Netflix, plus rising interest rates, high inflation, labor shortages, and more, and the market’s future seems downright bleak.

But is there an end in sight? Can the market make a comeback from disappointing results? Find out more about the drivers and severity of this downturn as well as the resiliency of the market in our latest Market Update: Bear Watch.