Making Sense: February Highlights
CFA | SVP, Chief Investment Officer
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.
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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