Both stocks and bonds have been ugly Some investors face huge losses

and dairy.

Target’s stock tumbled nearly 25% Wednesday

Wall Street was disappointed by earnings.

Target CEO Brian Cornell blamed inflationary pressures, as well as supply-chain disruptions that caused some inventory to arrive too early and some to arrive to late to meet demand.

Target’s CEO also noted that shoppers are shifting their spending some as birthday parties for children resume, driving up toy sales; and more people plan to travel, driving up luggage sales.

Investors are seeing tough times for both stocks and bonds, which isn’t typical.

David Kudla, CEO of Mainstay Capital Management in Grand Blanc, noted that both the stock and bond markets have reacted adversely since early this year, as investors anticipate how aggressively the Federal Reserve will need to raise shortterm interest rates to drive inflation lower.

How much and how fast inflation comes down, Kudla said, will determine whether the Fed can ease up on its tightening policy.

“And this will determine the direction for markets through the remainder of 2022,” Kudla said.

He noted that technology companies typically suffer more in market sell-offs that are triggered by rising rates and that has already happened this year.

“Value stocks and commodities companies that perform well during times of high inflation are obviously holding up very well,” he said.

How much money you’ve lost in the past year depends greatly on where you’ve invested.

David Sowerby, Bloomfield Hills-based managing director and portfolio manager for Ancora Advisors, noted that bitcoin was down 54% as of May 9 from its 52-week high hit in November 2021.

GameStop was down 67% as of May 9 from its 52-week high set in June 2021. Netflix was down 75% from its 52-week high set in November 2021. And Peloton was down 89% from its 52-week high hit in late June 2021.

The Standard & Poor’s 500 index, by contrast, was down 17% through May 9 from its 52-week high that was hit on Jan.

3.

While things can even out a bit in the days ahead, according to some analysts, the ride could continue to be volatile in the summer, too.

Companies that sell discretionary goods to consumers — and let’s face it, a lot of what we put in those carts at Target and Walmart is stuff we really don’t need — have far less certainty when it comes to sales outlooks if consumers start dwelling on every dollar they’re spending now that inflation is so high.