Market Commentary – Q1 2022
April 7, 2022
After a strong 2021, the first quarter of 2022 has been difficult for the markets. Russia’s invasion of Ukraine has roiled the global economy, but even prior to the invasion, uncertainty was on the rise as central banks around the world began to tighten monetary policy to combat rampant inflation. This increased uncertainty has led to increased volatility and big swings in the market. Both the NASDAQ and Russell 2000 entered bear
markets during the quarter, and the S&P 500 fell into correction territory. The markets did stage an impressive rebound in late-March, but much of the rally was driven by the closing of puts and other hedging options rather than a rebound of optimism. Despite the rebound, the S&P 500 closed the quarter down nearly 5% from the beginning of the year. The bond market has fared even worse, with the Bloomberg Aggregate Bond index down more than 6% this year, marking the worst quarterly performance since 1980.
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