2022 Investment Market Summary & How To Face The Next Quarter

As we reach the end of the first quarter of 2022, it's time to look back and see how the financial markets have performed. This period has been marked by dramatic events, including rising inflation, the war in Ukraine, rising interest rates, sanctions on Russia, and a new COVID-19 outbreak in China. 

Let's take a closer look at how these events have affected various markets worldwide and how to begin your investment planning for the next quarter.

Rising Inflation: 

One of the big stories of the first quarter was rising inflation. This was driven by some factors, including higher energy prices, higher food prices, and strong economic growth. The result was that central banks worldwide were forced to raise interest rates to combat inflation.

War in Ukraine: 

Another major story this quarter was the war in Ukraine. This conflict began in early January when Russia launched a military offensive against Ukraine. The fighting has since escalated, with both sides exchanging artillery and missile strikes. The war has killed thousands of people and displaced millions more.

The conflict has also had a major impact on the markets, with investors selling off assets seen as risky. This has caused the prices of oil and gas to rise and the prices of other commodities.

Interest Rates: 

Another big story this quarter was the rise in interest rates. This was driven by central banks worldwide raising rates to combat inflation. The result was that bond yields rose, and mortgage rates followed suit. This has made it more expensive for consumers to borrow money and has put pressure on the stock market.

Sanctions on Russia: 

This quarter also saw the United States and European Union impose sanctions on Russia. These sanctions were in response to Russia's involvement in the war in Ukraine. The sanctions have caused the Russian economy to contract and have led to a sell-off in Russian assets.

COVID-19 Outbreak in China: 

The final major event of the quarter was the outbreak of a new COVID-19 outbreak in China. This has led to a sharp sell-off in Chinese assets as investors worry about the potential economic impact of the virus.

How To Face The Next Financial Quarter With Financial Advisors

Now that we've looked at the first quarter's major events, let's look at how to face this next quarter. If you’re worried about current events and their effect on your finances, the first thing you should do is speak to a financial advisor. They can help you assess your current situation and make recommendations on how to best position yourself for the second quarter.

It's also important to stay updated on the latest news and developments. This will help you make informed decisions about your investments. Finally, remember that there is always risk in the markets- but by diversifying your portfolio and taking a long-term view, you can weather any storms that come your way.

Keep Track Of Your Wealth Management With Womack

Being prepared is never a bad idea. If you want to improve or begin your investment planning, contact our expert financial advisors at Womack Investment Advisers. Our wealth management experts have over 30 years of experience helping thousands of clients prepare their finances and investments to face even the hardest crisis.

Our services are 100% personalized according to your financial goals and expectations. We also provide advice and suggestions for emergency preparedness, using our independent research to guide our clients through a fluctuating financial market.

SPEAK WITH ONE OF OUR EXPERTS