What Happened To Last Years’ Stock Market Bulls?

What Happened To Last Years’ Stock Market Bulls?

Reaction to a falling market So what has happened? Has there been an economic collapse, political scandal, war? Fortunately, none of the above but this month's action in the stock market, especially last week, has caused many to question their outlook for the stock market in 2022. The weekly performance numbers tell the story as the losses were recorded in just four days of trading. The iShares Russell 2000 was the weakest down 8. 1% as it was only slightly worse than the 7. 5% decline in the growth dominated Nasdaq 100 Index. The prospect that the Nasdaq 100 could record its worst month since 2008 is unlikely to improve investor sentiment. The 5. 7% loss in the S&P 500 was the largest since March 2020 and the Dow Jones Industrials did not do much better, losing 4. 6% for the week. Many of the stocks in the Dow Industrials including Microsoft (MSFT) and Apple Inc. (AAPL) report earnings this week. As expected last week the bearish % in the American Association of Individual Investors survey did drop further to 21%. Of course the percentage could still go lower as in early 2016 it recorded a low of 17. 9%.