By any measure, 2021 was a strong year for investors. But what’s in store for
2022? From my perspective, I expect that many of the same forces that
influenced markets last year will play a role again in the year ahead.
COVID-19 remains tragic and unpredictable. The pandemic was one of the
primary drivers of financial market activity in 2021. I hope that the worst is behind
us, but I would not be surprised to see COVID-related events influence markets
in the New Year.
The Federal Reserve will continue to get its share of headlines. From Fed Chair’s
Powell’s nomination hearings to potential changes in interest rates, expect
investors’ attention to shift to the Fed from time to time in 2022.
Tax law changes are always possible, but many of the anticipated federal tax law
changes in 2021 were linked to President Biden’s Build Back Better plan, which
ended the year in debate with Congress. So, stay tuned here.
January has led off with a downturn that many have been anticipating. What is in
store for the next 11 ½ months? Here are my predictions, which the be
straightforward are the same every year:
- Nobody can predict what the economy and markets will do but they will do
something that will surprise us, and we will all look back and think it was
obvious. - Investors who watch the market often will experience more stress than
people who don’t – and those who focus on the things they can control will
have a better experience than those who focus on things that they can’t. - Investors that dump their plan to follow a sure thing will have lower long-
term returns than those who stay with their plan.
The best investment results are achieved by those who first, set a plan, have the
discipline to ignore distractions, and keep focus on the log-term.
Here’s to a prosperous new year!
Kevin Theissen, HWC Financial
