Two the Point — Officially a Bear Market…but Still Ahead of the Game

Market Insights in Two Minutes – As the old saying goes, “You can’t really know where you are going until you know where you have been.”  Investors have enjoyed some very good returns over the last decade, and even with the recent market volatility, we were given a large head start heading into 2022.  Let’s look at some data.
 
These charts compare the actual performance of the S&P 500 (Blue) with what performance would have been assuming average stock market returns (~10%) each year since 2010 (Green).
 
Since the beginning of 2010, a $100 investment would have grown to about $420 by the end of 2021.  It was a robust 10+ years in the market, particularly when compared to the hypothetical average market return over that period resulting in a value of only $314.
 
With the S&P 500 down 20% in 2022 as of this writing (June 15, 2022), that $420 dollars is now worth $340, while the hypothetical average market return value increased to $328.  Even with the sharp drawdown in stocks this year…we’re still ahead of the game.
Source: FactSet; Bryn Mawr Trust

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