Review the latest Weekly Headings by CIO Larry Adam.
Key Takeaways
- Consumer, business, & investor sentiment have declined
- The macroeconomic backdrop may turn more favorable
- Mistiming the market can be detrimental to a portfolio
The equity market was on cruise control, but now headline congestion has the S&P 500 down more than 17% year-to-date—its worst start to a year in at least 25 years.* The initial volatility in January was not quite as worrisome, as the market had withstood two years without a 10% pullback. However, Russia’s invasion of Ukraine became a major roadblock, with oil prices, inflation, and expectations of Fed rate hikes surging. Add in fears of China’s zero-COVID policy worsening supply constraints and slowing global growth, and investors questioned if the economy and the equity market were no longer on a positive route. But before investors head for the exit ramp, we encourage them to assess the underlying fundamentals, put the recent pullback into perspective, and understand just how headline driven the market has become.
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All expressions of opinion reflect the judgment of Raymond James & Associates, Inc., and are subject to change. Information has been obtained from sources considered reliable, but we do not guarantee that the material presented is accurate or that it provides a complete description of the securities, markets or developments mentioned. There is no assurance any of the trends mentioned will continue or that any of the forecasts mentioned will occur. Economic and market conditions are subject to change. Investing involves risk including the possible loss of capital. International investing involves additional risks such as currency fluctuations, differing financial accounting standards, and possible political and economic instability. These risks are greater in emerging markets. Companies engaged in business related to a specific sector are subject to fierce competition and their products and services may be subject to rapid obsolescence. Past performance may not be indicative of future results.
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