Commentary
Investors may need to prepare themselves for the possibility that the good times are over.
Stock market investors have generally enjoyed a decade of great returns dating back to 2013, when the market emerged from the doldrums of the 2008 financial crisis.
The S&P 500 has now lost almost 25 percent in 2022 after a week of selloffs following the Federal Reserve’s latest round of 75-basis-point-benchmark interest rate hikes. The outlook from here isn’t very optimistic.
Before we dive into what the future may hold, it’s worth revisiting how spectacular returns have been over the last decade. In the three years from the beginning of 2019 to the end of last year (2021), the S&P 500 has increased 89.9 percent, or at an annual rate of 23.8 percent. During the decade from 2011 to 2021, the market gained 274.7 percent, or an annual return of 14.1 percent over the decade. …