Our 2022 outlook called for a more challenging year, noting Fed policy and inflation were the most likely factors to disrupt the relative calm of 2021.
The Federal Reserve has a big challenge: Tame a surge in inflation that reached levels not seen in four decades without pushing the economy into recession.
While the world remained tense over the ongoing pandemic, the stock market did not skip a beat in 2021.
In the aftermath of the pandemic, both the economy and financial markets continue to strengthen.
Twelve months later, financial markets have recovered, and the economy appears to be on track. Some aspects of the economy are still struggling, but the stock market has hit new highs.
Variable conditions are applicable in both the economy and stock market; just because the winds are favorable does not mean that an occasional storm will not appear.