What the Media was Worried About – May 2022

I’m catching up.  May had fewer headlines, but they were pretty huge. Page One Leak from the Supreme Court that they will overturn Roe vs Wade, making abortion a state issue, not federal. Economy/Markets Federal Reserve raises rates 0.75% (huge raise).  Equity markets rally 3% on the day. Bank of England sees 10% inflation by the end of 2022 Markets crash.  Bear market intraday, but not official as it did not close down 20% from highs. S&P 500 streak of 7 straight down weeks finally breaks. Other monkeypox is a thing. PS Just when we thought SCOTUS was once again a bastion of decorum and collegiality, bam.  I’m sure it all blows over by June, right?  Ok, the media worrying kicks back into high gear next month: ESG, more inflation, and sriracha.

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Coronavirus Update

Here’s how I see it.  The recovery since 4Q2018 was so smooth that the markets have been looking for a reason to sell off for a while.  Acceleration dropped after 4Q2018 fell off of the 1 year numbers.  The markets hiccuped after news of the coronavirus got really serious at the end of January.  I think the real catalyst for the selloff, though, was Bernie winning Nevada.  I’ve lived through at least two Presidents who were going to destroy democracy and wipe out the stock market.  Everything has turned out fine so far.  Even if Bernie gets elected, America will live.  So I think this is all overblown to some degree.  I was about to say to a ‘great’ degree, but this market pullback isn’t even that deep.  The average year sees a drawdown of 14%.  We had a 20% drop a little over a year ago.  The coronavirus is…