I loved reading the Year in Sports by Sports Illustrated as a kid. It was a collection of their best pictures from the previous year and required reading for my cohort of friends. So here is a look at how markets, investments, and economic indicators performed last year.
The S&P 500, Dow Jones, and NASDAQ performed well last year.
Though stocks performed well, they fell several times last year.
The bond market struggled last year as interest rates and inflation climbed.
Working from home stocks got crushed as investors focused on earnings, profits, and cash flows.
Bitcoin had another excellent year but sold off significantly in November and December.
Gold finished in negative territory despite rising inflation.
Inflation jumped last year, finishing the year at 6.81%.
Growth beat value again despite a robust first-half surge from value companies.
GDP posted a solid gain.
Household debt continues to climb.
International investments lagged US stocks.
Large-caps outperformed small caps, which beat mid-caps.
Interest rates rose significantly last year.
Real estate markets turned in another stellar year.
Unemployment rates dropped last year.
I wish you and your family a Happy New Year. Follow your plan, diversify your assets, save your money, invest often, rebalance your accounts, think long term, and good things will happen.
A picture is worth a thousand words. ~ Albert Einstein
January 7, 2022
Bill Parrott, CFP®, is the President and CEO of Parrott Wealth Management located in Austin, Texas. Parrott Wealth Management is a fee-only, fiduciary, registered investment advisor firm. Our goal is to remove complexity, confusion, and worry from the investment and financial planning process so our clients can pursue a life of purpose. Our firm does not have an asset or fee minimum, and we work with anybody who needs financial help regardless of age, income, or asset level. PWM’s custodian is TD Ameritrade, and our annual fee starts at .5% of your assets and drops depending on the level of your assets.
Note: Investments are not guaranteed and do involve risk. Your returns may differ from those posted in this blog. PWM is not a tax advisor, nor do we give tax advice. Please consult your tax advisor for items that are specific to your situation. Options involve risk and aren’t suitable for every investor.