Q1 2022 Global Market Review & Outlook

Inside, you will find a summary of market activity and our market outlook.

• Early Year Volatility Appears to be a Classic Correction: Geopolitical uncertainty drove a sharp, early year decline in global markets. Despite the humanitarian tragedy, the scope of the conflict seems unlikely to derail the global economy or global equity markets.
• Increased Investor Pessimism: Depressed sentiment, driven primarily by Russia’s invasion of Ukraine and concerns on inflation, has significantly lowered investor expectations increasing the likelihood that markets realize a better-than-expected outcome.
• Global Markets Typically Reward US Political Gridlock: The incumbent party routinely loses power during the midterm year, reducing political uncertainty and the likelihood of extreme legislation. Increased gridlock likely acts as a tailwind for global markets in the back half of the year.