Published Wednesday, June 15, 2022 at: 2:38 PM EDT
Nearly half of professionals say the bear market would bottom after sustaining a loss of -25% -- a mere three percentage point loss from yesterday’s closing price. Another 34% of practitioners say the S&P 500 loss would bottom at a loss of 30% before a new bull market begins.
The poll was conducted Tuesday, June 14 at 5 p.m. EDT, at a financial economics class attended by more than 200 professionals. More than half of the advisors attending the online class responded to this and two other poll questions.
Asked if clients are more worried about this bear market now than the -50% loss at the bottom of the 2008-9 bear market, 18.5% say clients are more worried now. More than 80% of advisors say their clients are not as worried now as they were in the world financial crisis and the bursting of the mortgage debt bubble 14 years ago.
Sixty percent of financial professionals polled say clients are not as worried now as they were in the Covid bear market of February-March 2020, when the S&P 500 lost -33.9% of its value before the Covid-recovery bull market began.
While no one can predict the bear market bottom with statistical reliability, the consensus forecast of CFP®, CPA and other financial planning professionals makes sense fundamentally. Based on recent economic data, the economy is growing. The crisis that triggered this bear market is nothing like 2008-9. The inflation crisis of 2022 is not a systemic threat to the financial system. The economy is not shutting down like the onset of Covid-19.
Nothing contained herein is to be considered a solicitation, research material, an investment recommendation, or advice of any kind, and it is subject to change without notice. Any investments or strategies referenced herein do not take into account the investment objectives, financial situation or particular needs of any specific person. Product suitability must be independently determined for each individual investor. Tax advice always depends on your particular personal situation and preferences. You should consult the appropriate financial professional regarding your specific circumstances.
The material represents an assessment of financial, economic and tax law at a specific point in time and is not intended to be a forecast of future events or a guarantee of future results. Forward-looking statements are subject to certain risks and uncertainties. Actual results, performance, or achievements may differ materially from those expressed or implied. Information is based on data gathered from what we believe are reliable sources. It is not guaranteed as to accuracy, does not purport to be complete, and is not intended to be used as a primary basis for investment decisions.
This article was written by a professional financial journalist for Advisor Products and is not intended as legal or investment advice.
©2022 Advisor Products Inc. All Rights Reserved.