Why the 2022 market could end like 1982

Why it matters: 1982 started out rocky, but it ended on a cheery note, according to Baird analyst Ross Mayfield.

What they’re saying: “...It is noteworthy that like many other midterm years, the 1982 market rallied into year-end once some of the political uncertainty abated,” Mayfield wrote in an analysis of Strategas data.

• Midterms "tend to feature some of the biggest selloffs and highest volatility of any year in a Presidential cycle, but investors who stay the course are... rewarded with strong outperformance as a result,” he added.
• "[T]he market persevered the 1982 environment, rallying into year-end and ultimately kicking off a multi-decade bull market that lasted until 2000," Mayfield says.

Our thought bubble: We don't know what will happen later this year. But as we learned during the 2020 bear market that birthed the current bull run, it's always darkest before the dawn.