Q2 2022 Commentary…
As expected, it was a very choppy first quarter for the stock market. As we turned the calendar over to 2022, the market gave us that stomach-churning feeling you get when you realize you are at the apex of the rollercoaster climb and now see what’s in front of you. From January 1, it was a swift ride down to a low point in early March before climbing about halfway back up by the end of March.
All of the same economic headwinds from the second half of 2021 have carried over into 2022 with a couple of new ones to boot. Rising gas and food prices, supply chain backlogs, increasing mortgage rates, and slowing economic growth have continued to stymie some of the excitement investors had previously held for the “Post-COVID re-opening” economy. The major differences between 2022 and the last half of 2021 is that some of the largest mega-cap growth stocks began to show cracks in their armor. When heavyweight stocks fare poorly, the index performance usually reflects it. That’s been the case so far in 2022.
