The US stock market has plummeted, but in every downturn opportunity can be found

S&P 500 has worst half since 1970. What does this mean for investors?

Counter Cut’s content this month is sponsored by The New Talbot.

Image Source: finviz.com S&P 500 6 month performance

The S&P 500, a US stock market index tracking the country's top 500 performing stocks, has had its worst performing half since 1970. 

You may be wondering how the American stock market would affect you. 

As investing has become more accessible, more and more people have added US stocks to their portfolios. In fact, if you want to start to become a more globalised investor, across the Atlantic seems like a sensible way to start. 

What does a poor half mean for future investments and how does this year compare to 1970?

 Let’s have a look at 1970: the S&P lost 21% of its value in the first half of the year also during a time of high inflation and economic uncertainty similar to those faced today. The following 6 months offered very difficult trading, yet the market rallied upwards by 27%. 

This by no means guarantees that the same bounce will occur again,  but what it does demonstrate is that the dismal performance of the last 6 months cannot be used to indicate what lies ahead. 

Markets are unpredictable entities. 

A recurrence of the recovery in 1970 could happen, but we could equally be facing a looming recession. 

But in every downturn, opportunity can be found. Investors, whether amateur hobbyists or fund managers, may just find that interesting stock they’ve been looking for at an all time discounted price.

One popular tech stock Apple is preparing to reverse its first half slump by rumoured launches to release a plethora of products. 

Over the next 12 months, according to Bloomberg, Apple will release: four iPhone 14 models, the company’s first mixed reality headset, new Apple watch variations, several macs with improved microchips and many other improvements to their products.

Earlier this year Apple also made the move into the financial sector by acquiring the UK's very own Credit Kudos. A company that uses machine learning to create accurate credit ratings.

This could be one of many acquisitions Apple makes to mark their territory in the financial sector.

With the stock price down 22% so far this year, Apple is definitely a watchlist on several investors minds.

Author: Nial Dixon (Financial Editor)

Counter Cut’s content this month is sponsored by The New Talbot. Enjoy traditional curried, mixed grills and starters that you won’t find elsewhere. Enjoy an extensive range from drinks from draught beers to delicious cocktails.

If you are interested in sponsoring our content, please contact editor@countercut.co.uk