Markets have the worst first half of a year in decades

It was the worst first half for global markets in decades. The S&P 500 fell 21% in the last six months, making it the worst half-yearly performance since 1970.

Sky-rocketing inflation and soaring interest rates added to the slow growth of the economy, which made almost all the markets fall.

Cryptocurrencies took the most beating as they crashed leaving retail investors in high losses.

Only commodity exchanges showed slightly positive results as crude oil prices went above $100 per barrel.

The challenge governments are facing worldwide is how to manage inflation without increasing interest rates. The US Fed is planning to keep raising the interest rates to control inflation, which results in a shortage of funds for equity markets.

On a positive note, historical data suggests that whenever markets crashed in the first half, they relatively bounced back in the second half.