As we enter 2022, the markets face some familiar hurdles. Unfortunately, worries that we’d hoped to leave behind in 2021 still remain. Inflation, COVID-19, and Fed policy uncertainty are all issues the market has to overcome in order to build off of 2021’s tremendous gains. The S&P 500 posted strong returns in 2021 while confronting those very same issues, but if it intends to generate another year of above-average returns, it’s going to have to navigate them all over again. As we start the new year, we see COVID-19 numbers spiking globally, U.S. inflation numbers drastically increasing, and the Fed accelerating their tapering program with the first rate hike likely right behind. Those could be some formidable headwinds as we kick off 2022, but it’s nothing the market hasn’t vaulted before. Of course, they do introduce the potential for variability of returns across markets and asset classes. In the Outlook, we offer our views on various asset classes and how we’re positioning portfolios in today’s climate.
Another consideration to make as we are entering 2022 is cyber security. It is important to be vigilant about cybercrime and understand how to protect your digital footprint. We have also included in this Outlook our Financial Planning Team’s top 10 tips on ways to protect yourself and your family from cybercrime for 2022 .