Phew. Stocks ended a tough year in a dismal fashion. Just as they kicked off the year in January with a slide, markets sold off into the holiday week. In December, the S&P 500 fell more than 6%. During the long bull run since the March 2009 bottom, the S&P rose more than 600 percent.
The S&P 500’s energy sector closed out the year up 59%, making it the only group within the index that didn’t post a loss. That’s the first time that only one sector within the S&P 500 has risen, according to data going back to 1990.
Everything changed this year when policymakers at the Federal Reserve accelerated how fast they raised interest rates. There were several sharp bear-market rallies, but the January selloff set the stage for the entire year.
The Fed’s efforts to tame the worst inflation in 40 years appear be working: Price increases have been slowing. Here, we believe inflation has peaked and will continue to fall, especially if the Fed continues to aggressively raise rates in 2023. What we have witnessed over the past 36 months triggered a generational shift in markets, starting with the pandemic that shocked global markets and propelled policymakers to induce generous stimulus. The inflation, once a non-issue for many younger Americans...Articles Read 2/2
🎁 Unlock 1 extra article by joining our Community!
You’ve reached your limit of 2 free monthly articles. Please enter your email to unlock 1 more articles.
Already have an account? Sign In 9649cb-c21671-b37bb1-37360e-82e3f8
Already have an account? Sign In 9649cb-c21671-b37bb1-37360e-82e3f8
