Welcome to our May Viewpoints, a monthly bulletin from PDS Planning to our valued clients and friends. Our goal with each issue of Viewpoints is to provide you with a wide variety of perspectives on life and wealth. Feel free to share with others.
- Warning – Bear Territory: The Nasdaq index, primarily made up of the volatile tech and healthcare sectors has entered into a bear market year to date. The general consensus agrees a fall of -20% or worse defines a bear market. The S&P 500 isn’t far behind, having fallen approximately -15.50% year-to-date. Though we hope it doesn’t follow suite. See below for more information on bear markets and bull markets.
- Still a Concern: As much as people want to move forward and start talking about “post-covid” cases are again on the rise. New cases in the US have increased 60% over the last couple weeks with hospitalizations increasing as well. New York is expected to raise their alert level from medium to high and urge residents to use masks indoors. (Source: New York Times)
- Twin Brothers from Ohio: Duncan went to Ohio State, Charlie went to Cincinnati, and both became the respective mascot for their school. During the 2021 season, both brothers put on their Brutus and Bearcat suit more than 100 times to cheer on their sports teams. (Source: WCPO Cincinnati)
- Shanghai Lockdown: China’s attempt of stamping out Covid outbreaks has been seriously hurting their economy. Unemployment has increased up to 6.1% and retail sales in April fell more than 11% compared to April 2021. In Shanghai, there were zero cars sold last month. (Source: WSJ)
Bear Markets & Bull Markets
Originally published April 6, 2020
Bull Market: A long-term trend of upward price movement in a stock index (i.e. the S&P 500), usually confirmed once values are up 20% from previous market lows. This generally means the economy is strong, unemployment is low, and stock prices are expected to continue their upward trend.
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