![Field of sunflowers](https://risadvisory.com/wp-content/uploads/2021/02/Layer-12-375x225.jpg)
![Field of sunflowers](https://risadvisory.com/wp-content/uploads/2021/02/Layer-12-375x225.jpg)
![Foot bridge](https://risadvisory.com/wp-content/uploads/2021/02/Layer-18-329x225.jpg)
Don’t Fight the Fed
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.
![A red bridge over a rough river](https://risadvisory.com/wp-content/uploads/2021/04/ann-arbor-bridge-335x225.jpg)
A Transition Year
While the world remained tense over the ongoing pandemic, the stock market did not skip a beat in 2021.
![A forest in autumn](https://risadvisory.com/wp-content/uploads/2021/02/Layer-9-338x225.jpg)
Slower Growth + Tighter Fed = Still Okay
In the aftermath of the pandemic, both the economy and financial markets continue to strengthen.
![Field of sunflowers](https://risadvisory.com/wp-content/uploads/2021/02/Layer-12-375x225.jpg)
An Ongoing Recovery
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.
![A footbridge in a winter landscape with snow and ice](https://risadvisory.com/wp-content/uploads/2021/04/ann-arbor-footbridge-winter-375x221.jpg)
Favorable Tradewinds
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.
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.