2022 is off to a challenging start for most investors. Stock prices have been down 6 of the past 9 weeks, and the major averages are either in or teetering on correction territory. Bond prices are lower, and yields are higher, which has created an opportunity for some but has resulted in losses for others.
The Fed is expected to raise interest rates at its March meeting, where they may attempt to thread the needle of cooling inflation while maintaining the economic recovery. Geopolitical events have added a layer of uncertainty and are one of the main drivers of volatility. Energy prices continue to move higher as events unfold in Eastern Europe. Corporate earnings are a bright spot. The job outlook is improving, and it appears that we’re moving past the pandemic. But these green shoots tend to be overlooked.
Add it all up, and you could be thinking, “I just want to sit this one out.” But that’s exactly the time when you should remind yourself about investment strategy.
Call me if you're worried about what lies ahead. We can talk over what’s on your mind.
A Challenging Start to 2022
March 08, 2022