5 Reasons the Stock Market Can Head a Lot Lower (and Why I'm Not Worried)
Following a historically strong bounce from the March 2020 pandemic lows, Wall Street and investors have endured a rough start to 2022. Through this past weekend, the benchmark S&P 500 (SNPINDEX: ^GSPC) and technology-driven Nasdaq Composite were lower by 8.8% and 13.4%, respectively, on a year-to-date basis.
While double-digit percentage corrections of around 10% are fairly common for the broader market -- the S&P 500 has navigated its way through 39 double-digit percentage declines since the beginning of 1950 -- drops that exceed 20% aren't nearly as frequent.
Based on a number of potential headwinds, my suspicion is the broader market will head considerably lower in the coming weeks and/or months, and eventually make a run at bear market territory (a drop of at least 20%). Yet, in spite of this heightened volatility, I'm not too concerned.
Source Fool.com
