Down 20%, Is the S&P 500 Safe to Invest in Right Now?
Just when it looked like the market might be on the mend, pow! Thanks to the 6.6% pullback from last week's high, the S&P 500 (SNPINDEX: ^GSPC) is now 20% below its January peak. That's bear market territory -- again -- against a backdrop of economic trouble. For instance, the Federal Reserve remains open to more rate hikes to combat lingering inflation, while homebuilder confidence has now tumbled for a 12th consecutive month.
Translation: Stocks could have further to fall before reflecting the true condition of the economy.
The prospect of more market downside, on the other hand, certainly isn't etched in stone.
Source Fool.com
