- US stocks are on course for worst first half of the year in more than half a century.
- Bonds, which investors rely on to offset stock market drops, have performed poorly.
- US bond market is down 10.8 percent year-to-date, putting it on pace for its worst performance.
With US stocks on course for their worst first half of the year in more than half a century, investors are using a variety of indices to assess whether the upcoming months will offer relief or more of the same.
Read More: As Inflation Continues to Rise & Recession Fears Loom, YouGov poll
The first half of 2022 has been exceptionally difficult for investors. The S&P 500 is down almost 18 percent year-to-date, putting it on track for its worst first half since 1970, according to S&P Dow Jones Indices, as the Federal Reserve tightens monetary policy to combat the greatest inflation in decades.
Bonds, which investors normally rely on to offset stock market drops in their portfolios, have performed poorly. According to the Vanguard Total Bond Market Index fund, the U.S. bond market is down 10.8 percent year-to-date, putting it on pace for its worst performance in modern history.
With investor expectations swinging between prolonged high inflation and an economic slump induced by a hawkish Federal Reserve, few anticipate that the market’s volatility will subside any time soon.
Read More: European stocks open downward after Fed issues a recession warning
“We don’t expect the choppiness and volatility we’ve seen over the first half of the year to subside,” said Timothy Braude, global head of OCIO at Goldman Sachs Asset Management.
