Welcome to MarketBites! Here's your daily market update for 6/22/2022:
Quote of the Day:
"The secret to success is to know something no one else knows.”
- Aristotle
📝Daily Stock Market Thoughts
The stock market staged a broad-based comeback on Tuesday. The S&P 500 Index added 2.45%, led by energy and consumer discretionary shares. The move came after the stock market suffered the worst selloff since 2020 last week. The bounce could be related to optimistic remarks from President Biden that a U.S. recession isn't "inevitable."
It is important to stay vigilant even when our leaders make optimistic remarks however since even the smartest economists and advisors don't know if a recession will happen or not. (If interested, here is a paper from the IMF on the inaccuracy of economists' forecasts).
Is this a bounce or a market bottom then? While I don't want to speculate on what happens to tickers on a screen in the next couple of days or months, here is some interesting data from CNBC: The S&P 500 has popped more than 2% on 10 other occasions since this bear market began at the start of January, only to give up that gain and trade lower.
Today, investors will focus on Federal Reserve Chair Jerome Powell's Semiannual Monetary Policy Report to Congress. The report might have some updates on future rate hikes.
📊Chart Of The Day
Surging mortgage rates are starting to pressure the housing market. Rates rising from 2% to 6% not only hurt consumers, but all the companies in the space from mortgage finance companies to homebuilders.
What Else Is Happening: