Column, Money Matters

Market predictions for 2022

By Kevin Theissen

By any measure, 2021 was a strong year for investors. But what’s in store for 2022? From my perspective, I expect that many of the same forces that influenced markets last year will play a role again in the year ahead.

COVID-19 remains tragic and unpredictable. The pandemic was one of the primary drivers of financial market activity in 2021. I hope that the worst is behind us, but I would not be surprised to see COVID-related events influence markets in the New Year.

The Federal Reserve will continue to get its share of headlines. From Fed chair Powell’s nomination hearings to potential changes in interest rates, expect investors’ attention to shift to the Fed from time to time in 2022.

Tax law changes are always possible, but many of the anticipated federal tax law changes in 2021 were linked to President Biden’s Build Back Better plan, which ended the year in debate with congress. So, stay tuned here.

January has led off with a downturn that many have been anticipating. What is in store for the next 11 months? Here are my predictions.

Nobody can predict what the economy and markets will do but they will do something that will surprise us, and we will all look back and think it was obvious.

Investors who watch the market often will experience more stress than people who don’t – and those who focus on the things they can control will have a better experience than those who focus on things that they can’t.

Investors that dump their plan to follow a sure thing will have lower long-term returns than those who stay with their plan.

The best investment results are achieved by those who first set a plan, have the discipline to ignore distractions, and keep focus on the long-term. Here’s to a prosperous new year!

Kevin Theissen is the owner and principal of HWC Financial in Ludlow.

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