Review the latest Weekly Headings by CIO Larry Adam.
- 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.