A Closer Look At The Stock Market Sell Off

The selloff continued in April, with the S&P 500 Index down 8.72% in the usually bullish month of April.

The usual suspects of a slowing economy, a hawkish Federal Reserve Bank (Fed), supply chain worries, war in Europe, and now another China shutdown have all combined to make this one of the worst starts to a year ever for both stocks and bonds.

It is important to remember, though, that historically midterm years can be rough, down more than 17% on average peak-to-trough. The March 8 closing low, which amounted to a 13% correction, is still the low for the year as of now. The good news is a year off those lows stocks have historically gained more than 32% on average. (see the chart)

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