Contrary to 2021, when equity markets were in a bull run, 2022 has served as a not-so-gentle reminder that the stock market does not give free gifts. The macro attitude that is pushing the markets lower has been influenced by worries about a recession, geopolitical tensions, the energy crisis, and record inflation.
Still, with a strong labor market, and rising wages for workers to defend themselves against a recession; Federal Reserve chairman Jerome Powell reminded Americans at the annual Jackson Hole Symposium last week that the Fed is committed to bringing inflation down to its target 2% rate — even at the cost of causing some pain to households and businesses along the way.
