U.S. equities rebounded, albeit modestly in March, 2022. The S&P 500 Index recovered 3.7% on a total return basis in March, although the large-cap American shares index is still in the hole by 4.6% year to date. The Nasdaq and Dow Industrials posted gains too: 3.4% and 2.3%, respectively.
The yield curve, a historically reliable leading economic indicator, is signaling that a economic recession is waiting in the wings. But does that mean it’s time to deviate from your long-term investment plan?
Russia’s invasion of Ukraine has had a major impact on the global economy, and on the U.S. stock and bond market. As a result, it’s only natural to wonder if changes to your investments are warranted, and if so, how extensive those changes should be.
The stock market started 2022 with a downside bias, and the selling extended into February – with a crucial difference. Inflation was the primary reason for the equity market’s struggles in January, whereas February witnessed the start of a war in the Ukraine, an event with global ramifications.
Investor sentiment turned bearish in January for stocks and bonds as the markets factored in several simmering risks, including inflation, expectations for Federal Reserve rate hikes and war clouds looming in Ukraine as the world ponders a potential invasion by Russia.
In this article, Andrew Willms, explains why he believes there is a growing risk of a material stock market pullback and rising interest rates in 2022.