Take a look at last week’s market recap from Joe Gallemore, CIMA® Partner & Director of Investment Management for Argent Bridge Advisors. Watch the video now!
Joe’s Notes:
Stocks are playing a wild game of seesaw in recent weeks.
- The week of the 20th saw a significant skid in stock indexes caused by another record high inflation number which led to more aggressive action by the Federal Reserve. Most stock indexes went well into Bear Market Territory (defined as -20% or more).
- But then last week, stock indexes enjoyed their 2nd best week of 2022 seemingly prompted by very little news. Whether market participants thought stocks were oversold or they took the Fed’s aggressive action as a signal inflation will cool off sooner rather than later, the rally saw US indexes gain around 6% and claw back most of what was given up the prior week.
The best week of the year was a little over a month ago in May, which is a good illustration that the biggest market moves often happen in bunches. Pockets of volatility work both ways, and stocks can break out to the upside at any time for little or no apparent reason. This is why the description of stock markets having Animal Spirits was coined almost 100 years ago… This is by no means a new phenomenon. So it’s important to stay invested through volatility.
One bit of good news, China is starting to relax Covid lockdowns, which it will likely do very gradually. Hopefully, this will provide a tailwind for the global economy.
Everyone at Argent Bridge Advisors wishes you a very HAPPY Independence Day!
