2022 Market Preview: New Year’s Resolutions for the Federal Reserve and Investors

January 25, 2022 | Greg Leonberger, FSA, EA, MAAA, FCA, Director of Research, Managing Partner

Financial markets kick off 2022 against a backdrop of elevated inflation, a(nother) COVID surge, looming interest rate hikes, an undersupplied labor market, and booming equity returns over the last three years. In particular, concerns over rising inflation and higher rates have forced policymakers and investors to look more closely at their respective responsibilities, and we expect notable changes from both parties in 2022. When looked at more closely, these pivots are not much different than some of the New Year’s resolutions that people make each year.

In this letter, Director of Research Greg Leonberger, FSA, EA, MAAA posits:

• The Fed resolves to lose weight and exercise more
• Consumers reduce debt and increase savings
• Can bond investors adopt a more positive outlook for 2022?
• Will equity markets ever stop smoking?
• Should equity investors travel more to enhance their return potential?
• Learn something new to achieve risk and return goals
• Reduce stress

Read > 2022 Market Preview: New Year’s Resolutions for the Federal Reserve and Investors

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Watch >  2022 Market Preview Video with presentations by our research team analyzing last year’s performance as well as trends, themes, opportunities, and risks to watch for in 2022

 

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