EXPERT VIEW
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Coping with market corrections
As has been widely reported in the financial press recently most major markets have experienced a significant correction from the highs posted at the end of 2021. by Tim Mortimer
T
his has been particularly evident in the US market because of its stellar growth in the last two years and so this article will focus on the recent experience for the S&P 500 and Nasdaq 100.
Both indices have more than doubled from the lows in March 2020 after the first effects of the Covid-19 pandemic though to the end of 2021. The Nasdaq 100 was slightly the better performer, up 136% in that time compared to 108% for
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the S&P 500. This is to be expected given it is generally a more volatile index and that many technology companies were well placed to benefit from the shift in economic and social patterns as the pandemic developed. Since the turn of the year the S&P 500 fell by 9.8% to its yearto-date low on 27 January 2022 and the Nasdaq 100 has fallen even further, shedding 15%. Both indices have recovered a little in the subsequent two weeks.
