2021 Q4 Quarterly Market Review
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Join Dave and Nick as they talk about what the market did overall for 2021, what is going on right now, and what is predicted for 2022.
- The world is becoming more vaccinated; even with the omicron variant, the rate of death is down
- Equity markets were generally pretty strong during 2021
- The 3-year return for the S&P 500 is an astounding 26.1%
- Unemployment fell to 3.9% as of 12/31/21
- Peak stimulus (both monetary and fiscal) appears to be behind us, a possible drag on growth
- The Fed is ramping up the speed of tapering in preparation for raising rates in 2022
- Higher rates may be needed to stave off even higher inflation, which is currently running much hotter than 2% target
We cover topics such as:
- How Covid Vaccines affect the market
- Interest rates
- Currency and Exchange rates
- Labor marketing and unemployment rates
Things to worry about:
- We are at peak stimulus – the government has done everything it can to stimulate the economy both monetarily and fiscally.
- Rising interest rates. The expectation is 2.8%, which isn’t extremely high, but considerably higher than what we’ve been used to lately.
What do about it?
Refining and securing fixed loans are a consideration right now. Remember, even though inflation is rising, 2021 was the 20th best year on record for the S&P 500. 2019 was 16th and 2020 was the 41st best. To have the last 3 years grouped in the top half is good news.
Stay invested. Don’t get caught up in a month-to-month view of it. History and trends prove to ride it out. Concentrate on long-term goals and objectives. Investing is not about beating the benchmark or figuring out what is going to be the best performing asset class or stock. It is about goals and objectives for the long term, which will ultimately lead to success. Be sure to have the right asset allocating that matched your goals.
Maintain your focus on what really matters:
- Financial planning is a process, not an endpoint
- Concentrate on long-term goals and objectives
- Focus on reaching goals, not on beating benchmarks
- Maintain a disciplined approach, in good and bad markets
- Invest broadly and globally; asset allocation is key
- Reduce investment and tax costs where possible
- Rebalance as necessary
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