Although inflation and market volatility persist, the U.S. economy remains strong
- We believe there is a low probability of a U.S. recession developing in 2022. Despite high inflation, U.S. consumer spending should remain strong in the year ahead, buttressed by a strong job market, healthy balance sheets and the reopening of the service sector as COVID headwinds fade. – Bob Doll, Crossmark Global Investments
- The Omicron wave appears to have slowed the economy in the first quarter of 2022. However, we expect strong growth in the second quarter spurred by robust consumer and business spending. – Dr. David Kelly, JP Morgan
- Vanguard continues to foresee GDP growth around 3.5% in the United States in 2022, though oil prices and geopolitical risks from the Ukraine crisis bear watching. GDP increased at an annual rate of 7.0% in the fourth quarter, up from 2.3% third-quarter growth, according to the second estimate from the Bureau of Economic Analysis. – Vanguard
As always, we continue to believe that one’s circumstances and risk profile should determine the appropriate mix of investments, and not media headlines. Please contact us if you ever have any questions or concerns about your accounts or any news you hear.
Past performance may not be indicative of future results. Therefore, no current or prospective client should assume that the future performance of any specific investment, asset class, or investment strategy (including the investments and/or investment strategies recommended by the adviser), will be profitable or equal to past performance levels. Information in this commentary is gleaned from third party sources, and while believed to be reliable, is not independently verified.