Saturday, May 21, 2022

Stock Market No Longer in Easy Mode

Since the bottom in March 2020 until December 2021, the stock market was a money printing machine.   The overall market, especially growth stocks, only went up.   That ended with the start of 2022.

At first, I thought the market bottomed in late January, 2022.   I put additional funds in a Roth managed account.  That account is now down 16%.  In March 2022, I though the market had bottomed again and put additional funds into taxable managed account.   That account is now down 11%.    We have lost all of our gains from 2021 and starting to lose some gains from 2020.

At this point, I am making small trades based on earnings and make small buys on the dips and selling into the rallies.  Currently, I expect the market decline to continue for several more months, unless there is a major catalyst event to the upside, e.g. Russia ceasing the war with Ukraine.   In the meantime,  I am waiting for a further 10-20% drop before making any further large infusion of funds into stocks. 

For more on Reflections and Musings, check back Saturdays for a new segment.

This is not financial nor investment  advice. Please consult a professional advisor.

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