The second quarter of 2022 continued to pose a challenging environment for investors with the S&P 500 Index entering official bear market territory and both stocks and bonds declining for two consecutive quarters. Spikes in inflation were felt around the world with gas, energy, and food prices increasing. In a response to combat inflation, the Federal Reserve enacted a rate hike in June with an expectation set for additional increases to come. A slowdown and/or a recession is becoming increasingly obvious and once it becomes clearer, headwinds from rates may abate at which point we believe equities could start to experience improved conditions.
KAR CIO Doug Foreman reviews market performance for the quarter and provides his views on where we are in the inflationary cycle, long-term interest rates, and signs of a slowing economy.
Read our Q2 2022 market review.
You can also listen to our analysis of Q2 performance in Episode 188 of our stock market podcast, KayneCast.
This information is being provided by Kayne Anderson Rudnick Investment Management, LLC (“KAR”) for illustrative purposes only. Information contained in this material is not intended by KAR to be interpreted as investment advice, a recommendation or solicitation to purchase securities, or a recommendation of a particular course of action and has not been updated since the date of the material, and KAR does not undertake to update the information presented should it change. This information is based on KAR’s opinions at the time of the recording of this material and are subject to change based on market activity. There is no guarantee that any forecasts made will come to pass. KAR makes no warranty as to the accuracy or reliability of the information contained herein. Past performance is no guarantee of future results.