Chart of the Day - Thursday, July 7th, 2022

Today’s Chart of the Day was shared by Charlie Bilello (@charliebilello). Despite its name, the Wilshire 5000 actually contains about 3,6000 stocks, but it's a much broader measure of the total stock market than the S&P 500. It fell 20.9% in the first six months of this year, marking one of the worst six-month stretches for the index in its 50-year history. On a brighter note, Charlie points out that longer-term returns have historically been positive after similar six-month declines. As you can see, the index has almost always been higher one year out, and it has always been higher 3, 5, and 10 years out. To be fair, the index continued to decline for 3-6 months before finding a bottom in a few of these scenarios, but perhaps we're closer to the end of this decline than the beginning.