Bearish sentiments and charts have been circulating the media. We thought we would share this table from Invesco that displays the returns of the S&P 500 following a recession. Historically, the S&P has returned an average of 15.3%, 40.1%, and 78.7% on a 1-year, 3-year, and 5-year respective basis.
Astoria indicated in April of this year that we expected a recession for long-duration assets but a bull market for inflation-sensitive assets. Thus far in 2022, this has panned out. (Click here)
However, if you have funds to invest, we believe the current investment opportunity in value-centric assets and dividend-paying stocks makes sense. The P/E ratios of this cohort provide a margin of safety that to Astoria, is attractive.
Timing the market is impossible. Having a smart well-diversified portfolio along with an investment game plan would ease fears. Astoria has solutions to help navigate turbulent times.