Deeper Stock Dives Will Test Investor Nerves in 2022, Truist Says
- S&P 500 Index’s largest pullback in 2021 was just over 5%
- Years with small drops often followed by bigger declines
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Deeper stock pullbacks and more modest returns lay ahead in 2022 after a year of abnormally smooth sailing.
That’s the word from Truist Advisory Services, which says the market is set up for a return to the occasional gut-wrenching dives that characterize the later years of bull markets. Instead of the mild pullbacks of 5% or less that prevailed in 2021, history shows the potential for bigger retreats that sometimes ranged into double digits, according to Keith Lerner, Truist’s co-chief investment officer.