Vibecession
In 2022, interest rates hit levels not seen in 20 years and the conventional wisdom on Wall Street called for a recession to arrive in 2023. As a result, the stock market realized a bear market drawdown of 25%. However, the economy proved resilient, and the employment situation remained strong.
The Perfect Landing
The U.S. stock market saw a strong recovery through the first eight months of the year. After falling by 18% in 2022, the S&P 500 advanced by 16% through September 15. Over the past 18 months, the Federal Reserve raised short-term interest rates 11 times to 5.25%.
Trending in the Right Direction
The U.S. stock market saw a bear market in 2022, falling 25% before bottoming in October. Fears of a recession weighed on markets as the impacts of inflation and higher interest rates were unclear.
The Economy is Slowing, and That’s the Plan
2022 was a tough year for financial markets. Both stocks and bonds saw double-digit losses. Surging inflation forced the Federal Reserve to aggressively raise interest rates.
Navigating Uncertainty
2022 has been a year of change and surprises. Soaring inflation, war in Ukraine, and the rapid rise in interest rates were not on many people’s radars a year ago.
It took two full years for the stock market to finally reach new highs. After the recession worries of 2022 and a steady recovery in 2023, the S&P 500 finally hit new highs this January.