The Worst Of The Bear Market Is Over, Says Poll Of Professional Wealth Advisors

Published Wednesday, June 15, 2022 at: 2:38 PM EDT

Nearly half of professionals say the bear market would bottom after sustaining a loss of -25% -- a mere three percentage point loss from yesterday’s closing price. Another 34% of practitioners say the S&P 500 loss would bottom at a loss of 30% before a new bull market begins. 

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The poll was conducted Tuesday, June 14 at 5 p.m. EDT, at a financial economics class attended by more than 200 professionals. More than half of the advisors attending the online class responded to this and two other poll questions.

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Asked if clients are more worried about this bear market now than the -50% loss at the bottom of the 2008-9 bear market, 18.5% say clients are more worried now. More than 80% of advisors say their clients are not as worried now as they were in the world financial crisis and the bursting of the mortgage debt bubble 14 years ago.    

 

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Sixty percent of financial professionals polled say clients are not as worried now as they were in the Covid bear market of February-March 2020, when the S&P 500 lost -33.9% of its value before the Covid-recovery bull market began.

While no one can predict the bear market bottom with statistical reliability, the consensus forecast of CFP®, CPA and other financial planning professionals makes sense fundamentally. Based on recent economic data, the economy is growing. The crisis that triggered this bear market is nothing like 2008-9. The inflation crisis of 2022 is not a systemic threat to the financial system. The economy is not shutting down like the onset of Covid-19.   


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This article was written by a professional financial journalist for Tam Financial Advisors and is not intended as legal or investment advice.

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