Asset prices faced substantial pressure in the second quarter as investors began to feel the pain of high inflation and hawkish monetary policy. Within the US, the S&P 500 fell 16.60% in Q2 and finished down 19.96% year to date.
Inflation, which was previously expected to peak in the spring, unexpectedly rose in May. The Federal Reserve appears to be dedicated to its plan to lower inflation and restore price stability by raising interest rates to levels not seen in almost 30 years. Inflation continues to pressure global economies, leading to declines in asset prices worldwide.
While the second quarter was undoubtedly difficult, investors must remember the importance of long-term investing and avoid making rash decisions, even amid extreme market volatility.
Read the Retirement Market Recap to learn more about the Q2 market performance.
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HANYS Benefit Services is a marketing name of Healthcare Community Securities Corporation, member FINRA/SIPC, and an SEC Registered Investment Advisor. This material has been prepared for informational purposes only and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. Past performance is not indicative or a guarantee of future returns. The information in this piece is not a recommendation to invest nor should it be relied upon as instruction to invest. It is not possible to invest directly in an index. Exposure to an asset class represented by an index may be available through investable instruments based on that index. Please visit our website trueplanadvisors.com/legal/indices_disclosures for further explanation and detail surrounding the S&P 500 index referenced within.