2022 Outlook…Welcome to 2022

January 10, 2022

2022 Outlook…Welcome to 2022

While the markets and other things seemed to have a great year, I am glad to see 2021 in my rearview mirror.  Let’s chat about what we foresee for 2022.

1. COVID: COVID and COVID-related rules should have less influence on our lives 12 months from now.  It seems like we all have someone who has been impacted, tested positive (vaccinated, or not).  Cases are at record highs, but hospitalizations and deaths are not.  This is good News.
2. POLITICS: Right now it appears President Biden’s Build Back Better plan which increases entitlements and taxes seems stuck in the political mud.  While we do not think the $1.5 trillion plan gets passed as is, it is more likely that no plan happens or a much scaled back plan may get support.  With the mid-term elections in November, moderates on both sides of the aisle are very reluctant to raise taxes.  Plus, given the history of mid-term election, a GOP majority in the House and possible majority change in the Senate, should result in no tax hikes and all legislation would have to be bipartisan, which equates to gridlock. (Markets like gridlock)
3. ECONOMY: With hopes of no additional stimulus, rising employment and a healing supply chain, we expect inventories to rise again and chip makers to ramp up production to meet the enormous demand.  Thus we see Corporate Profits (which drive the market) to grow around 10%.  Not quite what we saw in 2021 in the recovery, but good enough to keep things humming in the market.  While there will be some pressure due to rising wages and lower participation, this is still a positive outlook for the Broad stock market.  Inflation will trickle down as inventories increase but don’t expect to see prices drop, just stabilize.
4. HEADWINDS: While we expect profits and growth to hover around 10%, we do not expect a smooth even ride.  Some “headwinds” and disruptions are always lurking.  The FED (Federal Reserve) is expected to raise “short-term” interest rates this year.  While the consensus seems to be three rate hikes (25 basis points each), we think it may only be two.  The FED uses this tool to slow rising prices and hopefully curb inflationary pressure.  They will also be stopping their “Bond” buying, thus limiting the money supply, which also helps inflation as well.  We will also be watching China (Taiwan) and Russia (Ukraine) as the year progresses.  While these events may cause temporary sell-offs, they will not change the fundamentals and that’s what we focus on.

There is exciting news, on my part as I have merged with my current business partners, to form “One” great entity.  The new business name is Bridgepoint Financial, LLC.  Over the course of the next few months you will start to see this name on statement and emails.  I am very excited to join forces with Mike and Terri Fassi as well as my current partner Timothy Doud.  This change is purely to combine the skills and talents of our group to be more effective working with our clients.  As for you, nothing will change in philosophy, planning or processes.  The goal is to raise our level of service and expertise and be a better resource for all of our clients.  Thank you for your support, trust and the opportunity to work with you and your families and businesses.

Feel free to contact us with any questions, thoughts and concerns.  We are in this together.

Jeff

Jeffrey A Rittner, CFP®

Certified Financial Planner™

Bridgepoint Financial, LLC

(970)416-0088 – Office

(970)232-5823 – Cell

jrittner@cfiemail.com

125 South Howes St. | Ste. 910 | Fort Collins, Colorado 80521 | Office: 970.416.0088 | Fax 970.416.0087 | www.bridgepointfinancialcolorado.com

Jeffrey Rittner, CFP® is a Registered Representative / Advisory Associate offering securities and advisory services through Centaurus Financial, Inc. member FINRA/SIPC,

and an Investment Advisor Representative, Bridgepoint Financial and Centaurus Financial, Inc. are not affiliated.