Investment Opportunities After the S&P 500’s Steepest Decline Since 1962

Column by Gabelli Funds


  1. Stocks closed down 16% for the second quarter and dropped 20% for the first half of the year, which was the S&P 500’s steepest total return decline since 1962.  Investors brace for more volatility amid heightened inflation and expected interest-rate increases.
  2. M&A activity has remained vibrant as the second quarter of 2022 marked the eighth consecutive quarter that M&A activity exceeded $1 trillion. Excluding SPAC mergers, M&A activity totaled $2.1 trillion, a decline of 14% from the record setting $2.5 trillion in the first half of 2021.
  3. We saw a few new issues in May and June, and we are optimistic that issuance will pick up through the second half of the year. In past downturns, the convertible market has been one of the first markets to rebound both from an issuance and performance perspective.