Today, the last trading day of 2022, on the close at 4 PM is hands down THE BEST TIME to BUY
Annual returns since 12/31/2000:
Source: finance.yahoo.com
This chart to me - as bad as today's headlines are - doesn't look so bad at all. Today's price (actually yesterday's 12/28/2022 close) looks right in line with the long term trend of nearly all three indexes.
What to notice about this chart?
- The QQQs immediately fell in 2001 and took approximately 10 years to recover their losses. Seven years later, the QQQs caught up with the SPY, took off, and just this year came back down to earth.
- The IWM OUTPERFORMED the SPY and QQQ for 17 years! Since 2019, IWM has been significantly weaker than the others.
- Finally, investors have a down year to buy into. A rare occurrance with these stock market index ETFs.
Here are the numbers:
2022's SPY 22% decline comes on the heels of last year's 25% increase.2019 and 2020 gains are still intact. The SPYs and QQQs had down years five times in the last 22 years! The QQQs do have a ways to go but they come off the heels of the 2019-2020 boom. And finally, I just don't see it for the IWM. Maybe the time for midcaps is past although I believe it WILL come back.
Bottom line: Its a GREAT time to BUY!
Disclaimer: Posts are for education only, may be subject to change without notice, and, while prepared with care, may be subject to omissions and errors. Send request to gdrahal@outlook.com to follow this blog and for additional information.
© 2022 George Rahal