Dig In
Goodbye 2022
With our latest trip around the sun nearly complete, it’s time to recap the 2022 journey.
We started the year focused on several key Balancing Acts, such as the Fed’s attempt to tighten monetary policy just enough to rein in inflation without causing a recession.
As the year progressed, it became clear that a number of imbalances – the war in Ukraine, China’s zero-COVID policies, and other lingering pandemic effects (looking at you, Supply Chain …) – drove inflation higher, increased volatility, and led to an equity bear market.
Rates rose quickly as the Fed aggressively took the fight to inflation, ultimately hitting 4.25%-4.50% by year’s end, and gross domestic product contracted in the first half of the year.
Fortunately, a hot jobs market and engaged consumer appear to have kept the economy out of recession. Unfortunately, many portfolios didn’t feel the economy’s expected 1.8% growth: Both equities and fixed income were down together for the first time since 1977.
As we sign off for 2022, we’ll leave you with our latest Sight|Lines for a deeper dive into what happened this year. We wish each of you happy holidays – we can’t wait to share more insights and fun in the new year!
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