Let’s Talk Money: Is the 2022 Stock Market Crash Over?

July marked the best month for the stock market since November 2020. Overall, the S&P 500 rallied by 9 percent in July. That may mean that the bear market that started last year ended back in June.

This rally even came as news came in that the economy declined for a second quarter in a row, and as the Federal Reserve raised interest rates by another 0.75 percent. But are traders getting ahead of themselves?

The market seems to be pricing in the idea that we’re past the worst of the Federal Reserve’s interest rate hikes. However, more data is needed. The July jobs report and inflation data could point to how close things are to an end.

Ironically, a strong jobs market will still mean we’re in a strong economy. And that inflation will likely remain higher for longer. So if jobs numbers come in worse than expected, the market will react positively.

If the job market remains strong, we may find out that we’re in a bear market rally. Potentially, that could mean that stocks head lower, even breaking through to new lows later in the year.

Investors will want cash to protect themselves. They’ll also want potential defensive investments like I-Bonds, a government bond whose payout is tied to interest payments. And investors can potentially start investing in blue-chip, dividend-paying stocks now.

To watch the full analysis on where the market is at now, click here.