{"id":1252,"date":"2022-07-21T06:00:51","date_gmt":"2022-07-21T13:00:51","guid":{"rendered":"https:\/\/humanitywealth.com\/uncategorized\/the-sp-500-had-its-worst-1st-half-since-1970-heres-what-comes-next\/"},"modified":"2022-08-29T23:38:40","modified_gmt":"2022-08-30T06:38:40","slug":"the-sp-500-had-its-worst-1st-half-since-1970-heres-what-comes-next","status":"publish","type":"post","link":"https:\/\/humanitywealth.com\/financial-planning\/the-sp-500-had-its-worst-1st-half-since-1970-heres-what-comes-next\/","title":{"rendered":"The S&P 500 had its Worst 1st Half Since 1970. Here’s What Comes Next."},"content":{"rendered":"

The S&P 500 Index of stocks had its worst first half since 1970, losing almost 21% in the year’s first six months.<\/p>\n

The S&P 500 is a stock market index that is viewed as a measure of how well the stock market is performing overall. It includes around 500 of the largest U.S. companies<\/a><\/strong>. The index fell 20.6% in the past six months, from its high-water mark in early January \u2014 the steepest plunge of its kind dating to 1970, as investors worried about decades-high inflation.<\/p>\n

Is recovery from S&P’s downfall impossible? Absolutely not. During the 2008 financial crisis and the Great Recession, the S&P 500 fell 46.13% from October 2007 to March 2009 but recovered all of its losses by March 2013.<\/p>\n

Another more recent example to consider is the impact of the COVID pandemic on the market– in 2020, the coronavirus pandemic sent the world into a recession and equity markets reeling as the S&P 500 plummeted by nearly 20%. However, The S&P bounced back in the second half of 2020 and reached several all-time highs in 2021.<\/p>\n

The Tech Bubble<\/h2>\n

In 2000, the stock market experienced a bubble. This period was marked by overvaluations, excess public enthusiasm for stocks, and speculation in the technology sector. This bubble exploded between 2000-2002, which caused a major hit to NASDAQ, while the S&P 500 also took a lesser hit. However, the S&P recovered in 2007, reaching new highs due to growth in housing, financial sector stocks, and commodity stocks.<\/p>\n

The Oil Crisis and 1980-1982 Recession<\/strong><\/h3>\n

The Federal Reserve raised interest rates and intervened, leading to declining inflationary pressures. This led to the bull market from 1982-2000- stock prices skyrocketed and the S&P 500 increased.<\/p>\n

From 2008-2009, a decline in house prices sparked an environment of intense fear which led to people thinking that stocks were a bad investment.<\/p>\n

The S&P 500 bottomed out in March 2009 during the financial crisis that has come to be known as the Great Recession. The decline was the largest drop in the S&P index since World War II<\/a><\/strong>.<\/p>\n

Companies included in S&P 500 have the following characteristics:<\/strong><\/h3>\n