Market Outlook · February 24, 2022

Making Sense: February Highlights

Brent Ciliano

CFA | SVP, Chief Investment Officer

Phillip Neuhart

SVP, Manager of Institutional Portfolio Strategy

Following the February 23 market update, Russia launched attacks on Ukraine, and markets responded upon opening on February 24. Considering this material development, we want to call out a couple of points from February's market update.

Consider history

Intra-year drawdowns are normal, and drawdowns of 20% or less tend to not last long. While volatility we're experiencing is noteworthy, keep in mind that intra-year drawdowns are the norm rather than the exception.

Inflation is at multi-decade highs, but expectations are moderating

Expectations are beginning to price the idea that while inflation will remain elevated, the outright pace of inflation will likely moderate from current levels

The bottom line for markets

Our 2022 S&P 500 price target is 4,900 equating to around +3% growth over 2021, but we expect a much more volatile year.

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