Market Pulse - 24 January 2022

Wild day on Wall Street. Volatility is here to stay.

Stocks accelerated their sell-off to start the week, before a remarkable mid-day turnaround, resulting in all US major indexes closing in the green.

Key Takeaways

  • 1,200 point swing in the Dow
  • Nasdaq was down 4.9% at the low, only to finish the day up 0.6%

Volatility and exacerbated selling this morning due to

  • Tensions in Russia/Ukraine
  • Uncertainty how China will react if the world is pre-occupied with Russian/Ukraine
  • Fed meeting this week
  • 1/3 of the way through S&P 500 earnings, tech earnings kick off this week


Even in years with normal to strong equity returns, there are still rolling waves of volatility and multiple corrections. That being said, it is perfectly normal to feel uneasy about market pullbacks resulting in a lower portfolio value in the short term. It is important not to react to these pullbacks and to keep in mind that volatility is common and to be expected.  

In the long run, discipline breeds success.  

We believe the market is in the process of bottoming, however investors should be prepared for more volatility over the comings months as the market hinges on every word the Fed says, increased tensions overseas, continued rotation from overvalued tech companies to value and defensive sectors, and earnings season plays out.

As always, if you have any questions, or would like to discuss your portfolio/current situation, please feel free to set up a call by clicking here.

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