Flirting With a Bear Market: How Did We Get Here, and What Comes Next?

May 24, 2022 | Evan Frazier, CFA, CAIA, Senior Research Analyst, David Hernandez, CFA, Director of Traditional Manager Search, Frank Valle, CFA, CAIA, Associate Director of Fixed Income, Jessica Noviskis, CFA, Associate Director of Alternatives, Greg Leonberger, FSA, EA, MAAA, FCA, Director of Research, Managing Partner

Quite simply, this has been the worst start to a year since the 1930s:

• One of only 19 quarters since 1976 when both bonds and stocks posted negative returns;
• One of only six of those quarters when bonds have underperformed stocks;
• The worst four-month return for the S&P 500 since 1939.

2022 to date has featured a myriad of macroeconomic factors coming to a head: inflation at its highest level since the 1980s, the Federal Reserve responding with aggressive rate hikes, and increasing concerns about the health of the consumer leading to a possible recession. An evolving pandemic, a war in Eastern Europe, and draconian lockdown policies in the world’s second-largest economy and largest manufacturing hub have further added to the problem and complicated the solution. With these macro headwinds and uncertainties driving markets year-to-date, Marquette’s fixed income, U.S. equities, and non-U.S. equities teams discuss the impacts on their asset classes and weigh in on the outlook from here.

Read > Flirting With a Bear Market: How Did We Get Here and What Comes Next?

 

The opinions expressed herein are those of Marquette Associates, Inc. (“Marquette”), and are subject to change without notice. This material is not financial advice or an offer to purchase or sell any product. Marquette reserves the right to modify its current investment strategies and techniques based on changing market dynamics or client needs.