In the near term, the outlook for the exact track the market will follow is uncertain because of all these factors that leave the market searching for direction.

Recession fears may make the Fed's task of stabilizing prices harder, as painfully higher interest rates fight inflation underpinned by supply constraints.

In our view, it is the sum total of rate hikes that matters in terms of the future value of equities, as opposed to simply timing and speed.

Our view is that private markets with limited liquidity are the most significant risk to the public equity market. The Fed tightening monetary policy, raising rates, and shrinking its balance sheet point to the desire to curb demand and limit risk-taking.

The Fed tightening up is not necessarily an indication that inflation will ease. While this is the idea behind their actions, historically, it is not always the result.

There was no shortage of events for the market to navigate, including the Federal Reserve’s first interest rate increase since December 2018, Russia’s invasion of Ukraine, and stubbornly high inflation pressures.

Despite 2021’s many extraordinary headlines, the S&P 500 traded higher during the quarter and finished the year with a +28.6% total return.

The Omicron variant may increase volatility and cause restrictions to be reimposed, but consumers and businesses are more adapted to living with restrictions.

Returns on the S&P 500 have held strong after the significant pullback experienced in the early part of 2020.

Returns on the S&P 500 have held strong after the significant pullback experienced in the early part of 2020.