The S&P 500 has seen one of its worst starts to the year in the post-WWII period. However, history suggests that markets tend to recover given supportive fundamentals. Non-recessionary calendar years with 13%+ drawdowns have seen an average annual return of 2%. In fact, 7 of 15 years saw a positive annual return and in 14 of those 15 episodes, the S&P 500 outperformed 2022's YTD returns. As such, we believe there is meaningful upside for the S&P 500.