S&P 500 slumps into bear market, Dow dives 875 points as 2022 losses accelerate
Source: Washington Post
U.S. stock markets continued their sharp decline on Monday as investment losses continued to pile up, creating an economic vise for many Americans who find themselves pinched between rising gas prices and diminishing investment accounts.
The S&P 500 fell 3.9 percent on the day and the tech-heavy Nasdaq composite index slumped 4.7 percent. The Dow Jones industrial average sank 875 points, or around 2.8 percent. Each of the indexes is down sharply in 2022, and there is no clear indication of when the markets could stabilize. Cryptocurrencies also swooned on Monday, with Bitcoin losing 15 percent of its value.
The Federal Reserve is slated to meet Tuesday and Wednesday and it is expected to raise interest rates as a way to tamp down inflation. But that initiative is also putting immense pressure on the stock market.
The decline puts the S&P 500 back in bear market territory, defined as a 20 percent fall from the most recent high, after it briefly touched the benchmark in intraday trading last month. The Nasdaq, meanwhile, is down more than 30 percent so far this year.
Read more: https://www.washingtonpost.com/business/2022/06/13/markets-inflation-interest-rates/
dem4decades
(11,282 posts)And probably the earth too.
We're fucked.
SemiHalfling
(53 posts)Or us, really.
[Wall of text ahead]
Fossil fuels are toxic when burned, and we need to do more to recapture exhaust at or near any source, but were going to need more energy sources. Getting there will also mean using some fossil fuels. Im not a petroleum specialist, but perhaps theres another way other than fire to catalyze it and release the energy safely. Space, however, has practically infinite energy and mass, so thats always an option.
The moon used to be seen as a solid option for energy production, and is very close, and has no remaining atmosphere to reduce solar panel efficiency. It may be dusty and prone to receiving asteroid strikes but its still one of the closest things we have to what we are looking for.
Speaking of satellites, Putins continued attempt to reclaim old Soviet satellites is
inadvisable. No one wants a world ending war based on some historic territory, and it appears that option has been kept off the table thankfully. Hopefully indefinitely.
The wound between Ukraine and Russia is going to take time to heal, and I dont have exact answers about how that should go down. The capture of the alleged Nazis from the steel factory may have inflamed Russia even further, creating perceived justification post facto, even if only a small percentage of them really were holding on to Nazi beliefs (statistically, youll always find some supremacist somewhere in a population). After the amount of time it took to capture them and wear them down its possible they may discover this due to their fatigue. But the answers they give probably wont differ in essence: they were attacked, they defended. Maybe a bit more effectively than the Russians anticipated.
Putin and his spiritual advisors interpretation of Orthodox Christianity has led to the idea that there has to be a supreme body, but achieving military supremacy over the known world has never lasted or given anyone lasting comfort in and of itself, no matter how hardened their minds are or how attractive the prospect is. It was also never the point of the New Testament either, despite that chapter of the Bible being quite a bit contradictory and cryptic at times. Climbing that particular ladder by force is always going to hurt those who assist, and it creates an inevitable downfall, or a tragic self-suffocation.
The western world has also appeared incensed that Macron and Kissinger proposed giving something to Putin to avoid humiliation. Frankly, the failure of their military ranks and communication networks was already a form of humiliation
no one wants to be seen as incompetent or unable to assert themselves. If the exposure of these failings, both economic (driving the aggression over oil) and military (driving the attempt to ensure permanent economic stability) are the target of diplomatic outreach and economic planning assistance that would technically be giving him something.
None of the war between the two countries was fair when we look at the suffering caused, and keeping it going this way is also not fair to the soldiers lost. We have to try to look forward to the next century, not the past one that led us here. I dont know why exactly Putin began this, but Russia does have a massive amount of land that could be made usable for its people. The remaining forces occupying Ukraine would be far more effectively repurposed at home rebuilding among friends and family, which is what they were supposed to be defending in the first place instead of drawing national or global ire. The inflation caused globally by this war immediately after Covid is just not doing anyone any real good.
Alexander Of Assyria
(7,839 posts)Gas prices are never mentioned in real dollar terms, adjusted for inflation its not that hard, its a choice not to do it the proper way.
totodeinhere
(13,058 posts)If the market continues to tank I may not have enough to retire on. And millions of other Americans are in the same boat. To say that it "is the least of anyones concern" is just false.
hibbing
(10,096 posts)Was hoping to retire "early", I'm scared to look at my account.
Peace
Alexander Of Assyria
(7,839 posts)LymphocyteLover
(5,643 posts)a lot in the stock market... and have lost a LOT lately. My 18 year old daughter was in shock when she learned how much we've lost in the past quarter.... she couldn't conceive of that amount of money disappearing and us not freaking out. But what can we do? Nothing. We are at the mercy of the market.
I'm just glad I'm not retiring for another few more years.
totodeinhere
(13,058 posts)You could make changes to your retirement tragedy and invest in more conservative lower return instruments which may have more long term stability. And there may be strategies that can be more appropriate during times of high inflation which may be around for a while.
LymphocyteLover
(5,643 posts)January 2021
former9thward
(31,981 posts)So yes, the market is a concern to most people. You seem to be suggesting gas prices are meaningless because of inflation. Yeah that is a great talking point. Folks, gas prices are not really so bad, its just the galloping inflation which makes them look bad as well as destroying your take home pay...
Alexander Of Assyria
(7,839 posts)former9thward
(31,981 posts)mahatmakanejeeves
(57,393 posts)Gas prices are never mentioned in real dollar terms, adjusted for inflation its not that hard, its a choice not to do it the proper way.
For those curious about the price of a gallon of gasoline adjusted for inflation:
Gasoline Prices Adjusted for Inflation
oldsoftie
(12,531 posts)MichMan
(11,910 posts)Warpy
(111,245 posts)so they've got a long way to fall before it really starts to pinch them hard. Well, that is if they bought boring, stodgy stuff in companies that turn enough of a profit to issue dividends.
If they went for fast money in tech stocks, they're going to get hosed. Again.
MichMan
(11,910 posts)Most people own mutual funds not individual shares. They don't know what corporations they are invested in and how much they paid.
I retired a year ago and my account is down 4 times what my salary was when I retired. I would have to go back to work for 4 years and save every penny just to get back to where I was a few months ago. I also live in a rural area where a trip to the store is 40 miles round trip, so $5 a gallon gas is pretty tough on social security incomes.
And no, there is no public transportation and I'm not riding a bicycle 20 miles and back to go grocery shopping in my mid 60's.
Warpy
(111,245 posts)because they knew the kid who inherited the farm wasn't going to have enough time to provide taxi service. Unfortunately, as farms got mechanized, towns dried up and blew away and people are stuck.
Indexed funds rise and fall with the market, but they don't tend to have the exorbitant fees of standard mutual funds that eat up the savings of so many people. What happens when the market falls is why I think the Republican plot to rob us of Social Security and put it all in the stock market is so grotesque.
You do have my sympathy, trying to haul groceries on a bicycle sucks, I've done enough of it. Panniers help but only if you get them balanced and clerks get stuffy if you hold up the checkout line trying to do it.
No, I don't want the potatoes, peanut butter, milk, and four on one side and the bread and eggs on the other, IT DOESN'T WORK THAT WAY.
FloridaBlues
(4,007 posts)Down turn just the past 3 trading days alone. Maybe this week it will not be as bad I hope. Going to talk to advisor this week to help move things and stop this drastic bleed on retirement account.
oldsoftie
(12,531 posts)So far no one seems to be changing their habits, but a bear market seems to make people stay home & pull back more. if that happens now, inflation should start to drop by fall.
Gas, OTOH, is probably going to continue being a pain even if people DO change their habits. The last dollar+ is on Putin. But if we can get it back to the $3 range it would be huge.
IronLionZion
(45,427 posts)I wish the Fed had done this months ago. Some tech companies are already rescinding offers to new hires since they lost investment capital faster than they expected.
Oh well, people still need to eat. So food, energy, housing, utilities, etc. are still strong. So I would invest for income instead of growth.
It won't be good for us to have a GOP Senate or House.
Crowman2009
(2,494 posts)Time to transfer everything in my 401(k) to a money market in order to avoid wild fluctuations. I'll just stick with savings bonds and CDs for now.
mahatmakanejeeves
(57,393 posts)If you do that now, you'll only be locking in your losses.
purr-rat beauty
(543 posts)Economics is a game of the rich and powerful - those who already have more than enough don't mind the losses as it gives them an opportunity to buy low....they're probably pushing the sell outs in the first place
empedocles
(15,751 posts)the prospects for a big rebound increase greatly - as traders trade.
The Mouth
(3,148 posts)It seems alike there is a chorus of excuses and minimizing just how seriously *BAD* things are.
I swear, one more person saying crap like "It's about the war in Russia", "Gas prices aren't as bad as under GWB accounting for inflation", "The Fed is just doing what it has to do" and every other version of "It's not so bad" is doing a grave disservice to the very real experiences of normal Americans who are getting hit *HARD* with both deadly inflation and a plunging market.
What some didn't seem to get about the insane gas prices (And IDGAF about how much gas costs per liter in Europe) is that these prices aren't just "Well get an electric car", these prices are why everything in every store is going up.
I'm sick and tired of people with their hands over their ears going 'LALALALA I can't hear you middle class rubes crying" and having as the only stock responses the war in Ukraine, the reaction from Covid, or how bad TGF was.
The party in power owns the economy. Right now, the economy sucks; we have inflation, we have a crashing stock market. Denial is bullshit.
The economy is a disaster, this is an emergency, people are hurting, and our leadership is not addressing this existential danger. This is as bad as the 1970's, but at least Carter and even Ford knew how terrible inflation is, I get very little sense of urgency from our leadership and none from the Pollyannas with rose colored glasses who have have either the 'let them eat cake' of the electric car people or the bitter jealousy of people who have no investments to be despoiled.
When you go to the store and the same stuff costs almost twice as much as it did the year before, there are no sufficient excuses, there is no explanation, there is no reason that is going to be sufficient for a lot of people to vote for whoever was *not* the incumbent.
The President and our leadership need to acknowledge how bad this is, make getting inflation under control the absolute number ONE priority no matter what has to happen to any other initiative, do any and everything to make it easier for goods to be manufactured, extracted and transported regardless of what sacred cows need to be slaughtered to make the factories roar, the oil and gas fields pump, and the trucks; everything else can wait.
MichMan
(11,910 posts)LymphocyteLover
(5,643 posts)the situation and they are talking about it.
I think Dem voters realize that a lot of these things are out of the control of the POTUS and congressional Dems, the problem is the mushy middle, as usual.
We have to hope things stabilize by the end of summer.
Warpy
(111,245 posts)QE never went to Main Street, it went to Wall street. Corporations and investment companies were finding themselves flush with cash, so stocks got bid up, dorporations buying their own stock in most cases.
Then the TFG tax cuts that disproportionately benefited the rich and the corporate, there's more money into the markets
Last, there was the cash bonanza that was supposed to pay employees while Covid restrictions kept them off the job. No free guesses where that money went.
The market has been not just inflated but hyperinflated for a very long time. All that cash is starting to evaporate, trousered weeks ago by a very few rich guys who saw this coming.
The real bleeding is going to come from tech stocks, many of which will simply not exist this time next year, companies that never turned a profit. The shakeout will be very reminiscent of the one in 2000-01.
muriel_volestrangler
(101,306 posts)Things may not be great if you invested a huge chunk of your wealth over the past 18 months, but if you've been investing for a few years, things shouldn't be that bad. Or if you intend to invest for a few years more, they probably won't be bad (that can't be guaranteed, of course). And one of those two things should be true - you should only invest in stock markets if you intend to be in for several years.
MichMan
(11,910 posts)Republicans will be happy to remind people their retirement accounts were doing fine until President Biden took office in January 2021.
LymphocyteLover
(5,643 posts)I'm really unclear how low it might go and I'm not sure I want to know.
LymphocyteLover
(5,643 posts)still I hope the bleeding stops sooner rather than later. This is getting depressing.
beaglelover
(3,466 posts)I was hoping to retire in 2 years. My financial advisor is updating my plan now to see if that is still a reality. To feel better, I tell myself that at least I'm buying at low prices at the moment. But to look at the YTD hit on my portfolio......OUCH!
Shanti Shanti Shanti
(12,047 posts)beaglelover
(3,466 posts)Also bought a Tesla in 2020. Another decision that has worked out in my favor.
Shanti Shanti Shanti
(12,047 posts)Dysfunctional
(452 posts)Do not sell your stock in good companies now unless you really need the money. Most people in the stock market have their money in an IRA and/or a 401K so they didn't buy their stocks all at one time so figure out what you really paid for the stocks. I never considered the stocks I owned as real worth until I sold them. DON'T PANIC