It’s been a steady and mostly uneventful week in the U.S. stock market – and that’s a good thing.
After a tumultuous start to the year with the longest losing streak since 2001, key indicators including inflation, jobs reports, and consumer spending are at smoother levels, and may even point toward economic recovery.
There are some talks about a potential recession and though we’re not entirely out of the woods just yet, the U.S. labor market remains healthy. Inflation has likely peaked based on hiring slowdowns and consumer data, and that slower market growth “isn’t bad for the long-term health of the market, because of how high valuations were getting,” says Thomas Muñoz, financial life advisor at Telemus, a financial advisory firm.
Will the Stock Market Recover?
The market narrowly avoided bear market status just two weeks ago. A bear market is defined as a 20% or more drop from a recent peak.
“The market often has extended downturns beyond 10%,” Muñoz explains. “They often begin with a singular event. That event was inflation.” To those still fearful, he says, “the stock market is the only market where people are afraid to buy things at discounts. The market is up over 80% since March of…
