Quarterly Market Commentary

As quickly as interest rates jumped in the third quarter, they retreated substantially in the 4th quarter.

Like my fig tree, technology stocks, among other overvalued companies, were clipped in the third quarter, hopefully leading to a healthier market.

With the lengthening of this cycle, the gains this year may be premature, and we potentially could experience a pullback in the market.

The rapid rise in interest rates has been met with some unintended consequences.

As we entered 2022, we knew that the Fed needed to aggressively address inflation once again.

This is a difficult market, plain and simple. All major U.S. indices hit a new low for the year on the last day of the quarter.

In the past, the Fed has been very cautious not to upset the stock market. However, with inflation at current levels, it doesn’t have that luxury.

A normal economic cycle has a trough and a peak, and while the Federal Reserve (Fed) works hard to smooth the curve, it is inevitable that the economy cools during certain periods.

2021 closed with a moderate “Santa Claus” rally amid continuing supply chain and inflation pressures.