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Weekly Chartbook

By: Aaron Lang - Portfolio Analyst

January 26, 2022

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Market Performance (YTD)


Source: YCharts
Disclaimer: Past performance is no guarantee of future performance

What’s happened in 2022?

It’s been a tough start for equities

Especially tech stocks

And also a tough start for bonds

And volatility is rising, though from a relatively muted level

It’s been a tough couple of weeks, but also equally as strange

Okay, so why is this happening?

Momentum is slowing

And this is all happening while inflation remains high and yields continue to rise

Here’s what an optimist might say

Credit spreads aren’t showing signs of panic

And leading indicators remain high 

And inflation might be peaking

And there’s still a ton of cash out there

And if inflation does continue higher, history says earnings might follow a similar path

And drawdowns like this are just a part of the process

And maybe the correction has already gone a little too far

Here’s what a pessimist might say

Wages are continuing to rise and are weighing on margins

And consumer sentiment remains low

And the recent action is historically not great

And the fed is set to begin tightening into an economy that is losing some momentum

Meanwhile, a positive development: China

Charts Of The Week

Disclosure

Clear Rock Advisors, LLC is registered with the SEC as a registered investment advisor with offices in Texas. Different types of investments involve varying degrees of risk. Therefore, it should not be assumed that future performance of any specific investment or investment strategy (including the investments and/or investment strategies recommended and/or undertaken by Clear Rock Advisors, LLC) or any investment-related or financial planning consulting services will be profitable, equal any corresponding indicated historical performance level(s), or prove successful. It remains the client’s responsibility to advise Clear Rock Advisors, LLC, in writing, if there are any changes in the client’s personal/financial situation or investment objectives for the purpose of reviewing, evaluating or revising Clear Rock Advisors, LLC’s  previous recommendations and/or services, or if the client would like to impose, add to, or modify any reasonable restrictions to Clear Rock Advisors, LLC’s services. A copy of Clear Rock Advisors, LLC’s current written disclosure statement discussing its advisory services and fees are available upon request.