Knowledge Center

Flash Market Commentary

As mentioned in our year-end 2021 “View From the Tower” publication, one thing to keep in mind as we entered the new year was that mid-term election years tend to be the most volatile within the four-year cycle and often include many relatively sharp stock market sell-offs accompanied by strong rebounds. Well, the beginning of 2022 has certainly seemed to substantiate this dynamic, at least for the time being, as domestic stocks in particular have experienced significant movements and have had a difficult start. The reasons for this have included: the Federal Reserve signaling a less accommodative posture, likely resulting in higher interest rates earlier and faster than previously anticipated; a continuation of heightened inflation levels, including on the wage front; ongoing COVID-19 concerns (which have recently been dissipating, thankfully) including continued impacts to supply chains; and the latest being related to Russia’s aggressive actions toward, and now the invasion of, Ukraine.  
As we have mentioned numerous times over the years, there always seems to be a menu of items on the horizon to be concerned about; some obviously more significant seemingly than others.  Realizing this, the key historically has been to focus on the long-term rather than get overly caught up in shorter-term gyrations.  Pullbacks, although never enjoyable, are part of the landscape.  However, disrupting an appropriately constructed portfolio with the hope of re-establishing it in a timely manner is typically an unproductive exercise, as missing just a few strong market days can have a material impact on long-term returns. 
Please be aware that your Country Club Trust Company team is keeping abreast of the market conditions, along with domestic and world events, and is here to serve you, as always. 


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