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News from Schott Financial Management

2022 Market Update

Feb 28, 2022

I wanted to provide a quick synopsis about what’s going on with the markets. As you probably know, 2022 has been volatile for the US Equity Markets. Today, the Dow Jones Industrial Average is down 482 points.

The reason for this downturn is three-fold. The headlines regarding Ukraine and its conflict with Russia. The second is inflation. The third is uncertainty with the Federal Reserve raising rates and reducing their balance sheet.

2021 was an excellent year for growth. However, with every upswing comes an eventual correction. Markets do not like uncertainty. It causes them to react swiftly and negatively. To make great returns in the equity market, corrections are an unfortunate part of the process.

On a positive note, Covid-19 seems to be lessening its impact on our community. Hospitalization rates from Yavapai County are down. Across the nation, things seem to be settling back to normal. Rate increases and minimizing The Fed’s balance sheet are also a good thing. Both will create new openings for market gains, especially in small-cap stocks and financials.

While I never pretend to have a crystal ball, I do believe there are opportunities for our clients, which I’d be happy to discuss further Feel free to reach out to our office to book an appointment, or you can always send me an email.

Securities offered through Registered Representatives of Cambridge Investment Research, Inc., a broker-dealer, member FINRA/SIPC. Advisory services offered through Cambridge Investment Research Advisors, Inc., a Registered Investment Adviser. Schott Financial Management and Cambridge are not affiliated.