Despite the strong year for stocks in 2021, markets have confidently priced in some negative trends gathering more momentum in 2022 which may help markets, should trends reverse.
Investor sentiment is one key to shorter-term market swings; with euphoria preceding September’s and late-November’s pullbacks; but better conditions in place … for now.
Both the market’s churn and success have bred a resurgence in optimism which, for now, has been positively offset by strong breadth and firm profit margins.
The Fed announced details of balance sheet tapering, but emphasized that the pace might be adjusted depending on inflation and economic trends heading into 2022.
Earnings season has been stellar so far, although the growth rate is well off its prior quarter peak, with profit margins in focus looking ahead.
Information on this site is for general informational purposes only and should not be considered individualized recommendations or personalized investment advice. The type of securities and investment strategies mentioned may not be suitable for everyone. Each investor needs to review a security transaction for his or her own particular situation. All expressions of opinion are subject to change without notice in reaction to shifting market, economic and geo-political conditions.
