Make This Financial Resolution For 2022
Published Wednesday, January 5, 2022 at: 12:04 PM EST
The U.S. stock market’s 133% five-year return dominated this diverse group of 13 securities investments. None of the other asset classes came even close to the total return of the Standard & Poor’s 500 stock index.
With another year passing, the financial media is naturally talking a lot about the spectacular returns on stocks and real estate, and there’s a smattering of coverage about the big losers – investments in energy and commodities. The coverage will get talked about at business luncheons, cocktail parties, and investment seminars. We suggest resolving not to get caught up in the talk in 2022.
The spectacular returns of stocks are causing speculation -- not just speculation in risky investments but speculation in the media that the stock market is in for a lackluster year in 2022 or even a loss. For example, The Wall Street Journal’s, January 3, 2022, print edition, led with a story entitled, “Stocks Confront Rockier Course In 2022.” Similarly, The New York Times, led its business section on Jan. 1, 2022, with the headline,” The Big Uneasy.” “Shares soared as interest rates stayed low and stimulus programs helped the economy,” The Times reported. “But expected changes could make investors wary.”
We suggest ignoring the speculation. The stock market is unpredictable. Covid, too, has been unpredictable. Inflation is higher than in decades. Federal Reserve policy just changed from dovish to hawkish on inflation, but interest rates have never been so low in U.S. history.
Despite the unprecedented crosscurrents, the stock market could go much higher in 2022. It also could go down. However, the economy is roaring and there is certainly no sign of a recession on the horizon.
If you rely on our advice, resolve in 2022 not to get caught up in the financial zeitgeist.
Nothing contained herein is to be considered a solicitation, research material, an investment recommendation, or advice of any kind, and it is subject to change without notice. Any investments or strategies referenced herein do not take into account the investment objectives, financial situation or particular needs of any specific person. Product suitability must be independently determined for each individual investor. Tax advice always depends on your particular personal situation and preferences. You should consult the appropriate financial professional regarding your specific circumstances.
The material represents an assessment of financial, economic and tax law at a specific point in time and is not intended to be a forecast of future events or a guarantee of future results. Forward-looking statements are subject to certain risks and uncertainties. Actual results, performance, or achievements may differ materially from those expressed or implied. Information is based on data gathered from what we believe are reliable sources. It is not guaranteed as to accuracy, does not purport to be complete, and is not intended to be used as a primary basis for investment decisions.
This article was written by a professional financial journalist for Advisor Products and is not intended as legal or investment advice.
©2022 Advisor Products Inc. All Rights Reserved.
- Defying Pandemic, S&P 500 Is Up 27.4% YTD
- 7 Signs The Economy Is Doing Better Than People Think
- Market Melt-Up Risk Grows
- Amid Rapid Crosscurrents, A New Wave Of Small Business Is Emerging
- Omicron Variant: What It Means To Investors?
- Special Report: Long-Term U.S. Equity Investments And Demographics
- Things Really Are Different This Time.
- Is A Market Melt-Up Under Way?
- An In-Depth Report For Investors On Key Economic Fundamentals
- What Secret Of Investing Is Revealed In This Picture?
- What Drives Stock Prices?
- Reason No. 7 To Hire A Financial Professional: Rebalancing
- A Framework For Investing For Life
- While Congress Must Deal With Debt Ceiling, Leading Economic Indicators Are At A Record High
- Negative Real Returns On Bonds Changes The Asset Valuation Paradigm