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worst since 2020

Despite March’s Bounce Back, Q1 2022 Ends as Worst Since 2020

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1 Worst Since 2020
2 Unemployment Rate
3 Oil Prices
4 Corporate Earnings Expectations
5 Webinar April 5th

Worst Since 2020

After a strong start, stocks trimmed gains throughout the week and ended slightly positive. We saw global markets (represented by the MSCI All Country World Index) up 0.5% and domestic stocks (represented by the S&P 500 Index) up 0.1%.

Despite being the worst quarter for stocks since 2020, most equity markets rebounded for a positive month of March. For the first quarter, global markets (represented by the MSCI All Country World Index) were down -5.4%, and domestic stocks (represented by the S&P 500 Index) were down -4.6%.

Unemployment Rate

More positive economic data was released last week with another strong jobs report leading the way. For the month of March, unemployment dropped to a 3.6% rate, which is the lowest since the pandemic started. Additionally, wage growth rose to 5.6%.

Oil Prices

After President Biden announced that the U.S. would release millions of barrels of oil from strategic reserves, oil prices dropped down below $100/barrel.

Corporate Earnings Expectations

Even in the face of high inflation and geopolitical turmoil, analysts have continued to raise corporate earnings expectations for 2022. For 2022, FactSet reported that analyst estimates for S&P 500 earnings growth have increased up to approximately 10%. There have been some adjustments, where the expectations for Q1 have dropped slightly while the remaining three quarters have risen.

Webinar April 5th

There is a lot to recap for Q1 and our outlook moving forward, so please join me tomorrow (4/5) for our quarterly webinar where I’ll do just that. Additionally, there will be a more detailed newsletter released later this week with content around the same topic.

I’d like to leave you with the final line we’ve used since we started these commentaries back at the very height of market volatility in March 2020. Always remember that we create financial/investment plans not for the easy times, but to prepare for the tough ones.

The views expressed in this commentary are subject to change and are not intended to be a recommendation or investment advice.  Such views do not take into account the individual financial circumstances or objectives of any investor that receives them.

All indices are unmanaged and are not available for direct investment. Indices do not incur costs including the payment of transaction costs, fees and other expenses. This information should not be considered a solicitation or an offer to provide any service in any jurisdiction where it would be unlawful to do so under the laws of that jurisdiction. Past performance is no guarantee of future results.

Financial planning and Investment advisory services offered through Diversified, LLC. Securities offered through Purshe Kaplan Sterling Investments, Member FINRA/SIPC Headquartered at 80 State Street, Albany, NY 12207. Purshe Kaplan Sterling Investments and Diversified, LLC are not affiliated companies.

Mike Horwath

Mike heads the internal Investment Committee that is responsible for the investment direction of the firm. He works closely with Diversified’s financial planners to support the investment side of the lifelong financial planning process. Lastly, it’s Mike’s responsibility to oversee the ever-changing global investment landscape and work with the planners to evaluate the impact on each of our client’s strategies.

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Financial planning and Investment advisory services offered through Diversified, LLC. 

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Diversified, LLC is an investment adviser registered with the U.S. Securities and Exchange Commission (SEC). Registration of an investment adviser does not imply any specific level of skill or training and does not constitute an endorsement of the firm by the SEC. Diversified only transacts business in states in which it is properly registered or is excluded or exempted from registration.  A copy of Diversified’s current written disclosure brochure which discusses, among other things, the firm’s business practices, services and fees, is available through the SEC’s website at: www.adviserinfo.sec.gov. Diversified does not provide tax or legal advice and individuals should seek the advice of their own tax or legal advisors for specific information regarding their situations. Investments in securities involve risk, including the possible loss of principal. The information on this website is not a recommendation nor an offer to sell (or solicitation of an offer to buy) securities in the United States or in any other jurisdiction.

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