The second quarter of 2022 continued to pose a challenging environment for investors with the S&P 500 Index entering official bear market territory and both stocks and bonds declining for two consecutive quarters.   Spikes in inflation were felt around the world with gas, energy, and food prices increasing.  In a response to combat inflation, the Federal Reserve enacted a rate hike in June with an expectation set for additional increases to come.  A slowdown and/or a recession is becoming increasingly obvious and once it becomes clearer, headwinds from rates may abate at which point we believe equities could start to experience improved conditions.

KAR CIO Doug Foreman reviews market performance for the quarter and provides his views on where we are in the inflationary cycle, long-term interest rates, and signs of a slowing economy.

Read our Q2 2022 market review.

You can also listen to our analysis of Q2 performance in Episode 188 of our stock market podcast, KayneCast.