U.S. equities posted their worst first half performance since 1970, as inflation concerns,
Fed rate hikes and slowing economic growth weighed on markets. The S&P 500® posted a loss of 20%, while the S&P MidCap 400® and S&P SmallCap 600® performed marginally better. Dividend, value and low volatility strategies outperformed, signaling the market's continuing emphasis on defense. Growth and High Beta have been the year's worst performers. Most sectors posted losses, with Energy the only one to post a gain YTD.
The S&P 500 entered “official” bear market territory in June, finishing the month at -8.3%, and bringing its total return for the first six months of 2022 to a dismal -20.0%. Unsurprisingly, every factor index also ended the month and year-to-date periods in the red.
For the first six months of the year, most factors outperformed the S&P 500. In part this comes from the relatively good performance of the smaller stocks in the index, but a major part of the story is the extraordinarily poor performance of Growth after a decade of dominance over Value.
Here's a look at the data:
Thanks to Tom McClellan For the McClellan Oscillator.
Technicals remain negative
Akin Investments invites you to schedule a free consultation and complimentary investment portfolio review. After the market moves of late it is important to keep your portfolio balanced
and positioned for the future.
Wishing you a safe and Happy 4th of July!