Market update May 14, 2022
We're sitting at an important potential inflection point in the markets and for those who haven't been keeping a close watch here's a quick recap. Sections of the stock market began peaking in November 2021 along with crypto currencies. Spectacular losses have occurred in once high-flying names along the way. Examples: Bitcoin peaked Nov 10 and is currently 57% percent off the highs. Netflix peaked Nov 17 and is currently 73% off its peak. Shopify peaked Nov 19 and sits 77% off its peak. The broader market has faired better, with the S&P 500 bouncing Thursday when it hit 20% off its peak, which occurred January 3. This is important because 20% historically has been used to define bear markets and because recent "major" bear market have had a significant bounce after being down 20%, at which point they re-tested the 200 day moving average. Exceptions were the covid crash of 2022 and the 1987 crash, but both of those were "black swan" cases that did