Byron Moore of the FPA.  Financial Planning Association of the Ark-La-Tex 147 Chelsea Drive Shreveport, LA 71105 Tel: (318) 286-2278 Fax: (318) 869-1603 (First call) email / Hud 08.25.10

The last time the stock market did worse in January to June, I was at a very high level. The year was 1970.

For me, that was a time of acne, polyester clothing, bad hair, trying to seduce girls, and Mrs. Lawrence’s English class. All the unpleasant experiences — like investing are for many people right now.

For a thousand years and generations X and Y, this is the first event and the rise in prices. The rise in prices has been followed by the Federal Reserve’s clear response to rising interest rates. Even our most developed market has not been able to deal with any of these problems.

The bond market has resold. Bond prices this year have dropped by 10% in the US

Since high interest rates reduce corporate profits, and since rising prices cause consumers to spend less money, the stock market has also become worse off. It is down 20% in the first six months of 2022 (as measured by the S&P 500 index).



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