The Perfect Landing
The U.S. stock market saw a strong recovery through the first eight months of the year. After falling by 18% in 2022, the S&P 500 advanced by 16% through September 15. Over the past 18 months, the Federal Reserve raised short-term interest rates 11 times to 5.25%.
Trending in the Right Direction
The U.S. stock market saw a bear market in 2022, falling 25% before bottoming in October. Fears of a recession weighed on markets as the impacts of inflation and higher interest rates were unclear.
The Economy is Slowing, and That’s the Plan
2022 was a tough year for financial markets. Both stocks and bonds saw double-digit losses. Surging inflation forced the Federal Reserve to aggressively raise interest rates.
Navigating Uncertainty
2022 has been a year of change and surprises. Soaring inflation, war in Ukraine, and the rapid rise in interest rates were not on many people’s radars a year ago.
Sour Patch or More?
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.
In 2022, interest rates hit levels not seen in 20 years and the conventional wisdom on Wall Street called for a recession to arrive in 2023. As a result, the stock market realized a bear market drawdown of 25%. However, the economy proved resilient, and the employment situation remained strong.