The Investor Insight | April 2022

A multitude of negative factors set U.S. stocks up for a difficult start to 2022, with the S&P 500 recording its worst January since 2009 and officially hitting correction territory in February, which led to the worst Q1 in more than three years. Growth-oriented stocks were at the epicenter of the pain amid fears of rising rates and a slowing economy. According to Bloomberg Analytics, at the end of Q1, the percentage of NASDAQ stocks down 50% or more hit a new record—more than 60% of the index, a record not seen since the 2000 Tech bubble.

We see both a short and long-term opportunity taking shape. In the near term, we believe indiscriminate selling has created attractive entry points, particularly into some value stocks with good funding tailwinds. At the same time, we believe investors should prepare for a long-run regime shift as the once-familiar slow-growth, low rate environment transitions to a new world order that may warrant greater selectivity and a rebalance toward value. Read More

What’s Inside?

• Q1 Market Commentary

• How to Hedge Inflation at Home