On average, bear markets (a decline of 20%+) hit stocks every four and a half years. In the last three years we've had two! The S&P declined 34% in early 2020 and over 20% this year.
But now for the good news. As of July 31st, the S&P is up:
Over 13% per year the last 3 years
Over 12% per year the last 5 years
And over 13% per year the last 10 years
Focus on your time in the market, not timing the market
Inflation continues to come in higher than expected with the latest reading at 9.1%. Even so, stock and bond markets rebounded in July, suggesting investors think the worst inflation figures are behind us.
This suggestion is backed up by a big decline in inflation breakeven rates (a gauge of inflation expectations for the future). The 5-year breakeven inflation rate has declined to 2.7% from 3.6% in May.
More silver lining from 2022's market declines: greater expected returns.
Article: Mind the Process, Not the Results - Setting process goals (ex: write for 2 uninterrupted hours) instead of result-oriented goals (ex: finish a blog post) creates more realistic and attainable action items.
Book: With the Old Breed: At Peleliu and Okinawa - It's been challenging to find time for reading lately (I blame my 10-month-old). But I could hardly put down this first-hand account of a U.S. Marine in World War II's pacific theatre. The author is also the main character of HBO's The Pacific.
