2022 Market Outlook: Navigating Moderation

By Crescent Team

From Pandemic to Endemic, Policy Maker Tightrope, and Inflation and Volatility Considerations

Key observations from our 2022 Market Outlook:

• Uncertainty related to the coronavirus and its new variants have been the primary source of downside volatility in equity markets.

• The Federal Reserve grew the money supply by almost 50 percent since 2019, from $14 trillion to over $21 trillion today, mostly in response to COVID.

• More persistent inflationary factors are more likely to keep inflation figures from reverting to the benign levels seen over the last two decades.

• Reassessing your ability to bear risk ahead of volatility helps stay the course when it arrives.

Our 2022 Market Outlook contains a look at financial market conditions, our 10-year capital market assumptions, and our investment themes for 2022.