Investors knew this year would be different. But lately, they’ve been getting a lesson in just how different it is shaping up to be.
Most analysts expected some action on interest rates from the U.S. Federal Reserve in 2022 — but maybe not the five rate hikes they’re now pricing in. Inflation was clearly driving upwards, but we’re seeing much higher, more consistent price increases. People have been moving their money away from growth-led tech companies and toward those in the value category, or stocks considered underpriced. And banks are now forecasting slower growth in the months ahead. All this is creating a wave of volatility not seen since the start of the pandemic era.