Historically Bad Half for Stocks and Bonds, Does it Get Better?

This week, Brian talks about how a historically weak quarter, six months, and year for stocks, bonds, and the two combined is now behind us. With stocks and bonds both showing weakness, not surprisingly a 60/40 balanced portfolio that combines the two has also shown weakness. ASince 1976 (the inception of the Bloomberg U.S. Aggregate Bond Index), the second quarter of 2022 was the fifth worst for the S&P 500 Index (“S&P 500”), the fourth weakest for the Bloomberg U.S. Aggregate Bond Index (“Agg”), but the worst quarter for a combination of the two, using a mix of 60% of the S&P 500 and 40% the Agg.Yet, stocks have historically bounced back strongly from big 2-quarter drops as we just experienced. In fact, after a more than 20% drop over 2 quarters (the S&P 500 Index fell 20.6% in the first half of 2022), the average gain the next 2 quarters has been 21.5%.Chart: Stocks After Big 2 Quarter DropsChart: July one of the strongest months over the last decadeFord Financial Group on FacebookFord Financial Group on YouTubeQuestions?Find us at FordFG.comEmail us at [email protected]:Cold Funk - Funkorama by Kevin MacLeod is licensed under a Creative Commons Attribution license. Source. Tracking ID: 1-05300409Send in your questions!