Cautiously Optimistic

It's been a rough start for 2022 in the stock market.?Uncertainty rules the day, and despite the stock market’s weak start to the year we remain cautiously optimistic that 2022 will end on a high note.?

Here are some of the headwinds that have contributed to market volatility:??

• The Omicron variant and its extended impact?
• Increasing concerns about inflation and supply chain issues
• Geopolitical concerns regarding Ukraine and Russia?
• Ambiguity on the breadth of the Federal Reserve increase of fed funds rates

However, despite these challenging headwinds, there is a lot to be optimistic about:

• We think the Omicron wave has peaked and will recede in the coming months, which should drive a reacceleration in economic growth?
• We believe the current bout of volatility may be thought of as a healthy correction and should be seen as an opportunity to buy
• The US economy is in great shape, with strong corporate earnings, healthy corporate balance sheets, and consumers that have seen their own net worth grow considerably in recent years?
• The pandemic served as a catalyst for non-tech companies to adopt innovation creating new efficiencies that help drive profitability

In our last newsletter we said 2022 was going to be a bumpy ride, and it will likely continue to be volatile. However, we continue to focus on letting market insights drive our decisions that lead to action, simplifying the complexities of our clients' success.

If you are interested in learning more or would like to discuss any concerns you may have based on the above commentary, click the "Contact Us" button below.?

Thank you,

Victor & Kim Gaxiola

Contact Us