JANUARY 2022 – WELCOME TO 2022!
At the turn of a new year, I like to reflect on the best parts of the previous year, even if it was filled with challenges and adversity.
In 2021, our clients enjoyed solid investment returns. We ascended into the Top 20 of all 1,370 Raymond James Financial Services offices nationwide. For the first time that I can remember, OU, OSU and TU all won college football bowl games in the same year! And best of all, two of my four college kids graduated!
As for the year ahead, we should witness a full global recovery as the pandemic wanes and economies across the world return to normal. Pent up consumer demand should drive more growth. Hopefully central banks will not tighten the money supply too much. Corporate earnings growth could remain strong even as the pace of growth slows. The elections in November will likely bring divided government, which should lock in the current lower tax rates from the Trump Administration.
Risks certainly persist, however, that we must be mindful of. Heaven forbid a new COVID strain hampers the global recovery after the Omicron variant peters out. Some economists are concerned the Federal Reserve will overreact to current inflation and cause an economic slowdown. U.S. tensions with Russia over Ukraine and similar pressures with China over Taiwan could also erupt into conflict and impact our economy.
We believe the major drivers of the economy and markets still point to a continuation of the current secular bullish uptrend, which could have years left to run. However, after three years in a row of very solid returns, it would be normal to see higher volatility this year and less performance.
We will endeavor to keep your investments balanced and well diversified. The strategies implemented last year to prepare for rising inflation and a rising interest rate environment are performing well relative to their benchmarks. We will also look for opportunities to strategically invest if increased volatility provides good values for buying.
I’m already saving more money than last year with two less college payments, and I’m looking ahead for new opportunities to invest and participate in this great American economy of ours! Our team is excited to walk alongside each of you through 2022!
Mike Mazzei, CFP®, MPAS®
MASTER PLANNER ADVANCED STUDIES®
President, Tulsa Wealth Advisors