Uncertainty persists, but equities markets are expected to rise and unemployment to continue to fall
- January’s selloff appears to have been an overreaction. We believe economic and earnings growth should sustain the current bull market, despite tighter monetary policy. But earnings will take on greater importance due to valuation levels. – Nuveen Equities Investment Council
- Fed Chair Jerome Powell flagged a likely rate hike in March and suggested the Fed could front-load rate hikes even more than previously indicated. – BlackRock Investment Institute
- The Bureau of Labor Statistics reported that 199,000 jobs were created in December and the unemployment rate fell to 3.9%. Vanguard anticipates further labor market tightening with continued upward wage pressure amid strong demand for workers. We expect the unemployment rate to fall below its pre-pandemic level toward the end of summer in 2022. – 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.