Equities Have A Rough Start Of The Year

Optimistic earnings expectations helped to reinforce equities following heightened volatility throughout January. Many analysts believe that recent earnings improvements are merely a result of stimulus driven growth for some companies.

Equities saw their worst monthly performance in January since March 2020, as elevated volatility drove all major indexes lower. The only two S&P 500 sectors ending positive for the month were energy and financials, with the real estate and consumer discretionary sectors having the largest pullbacks. Amazingly, the 12-month trailing returns through January 31st, were positive for all of the S&P 500 sectors.

The so-called FAANG stocks now represent 25% of the S&P 500 Index encouraging some money managers to reconsider exposure to certain indices with such concentration.

Sources: S&P, Bloomberg

Print Version: Equity Overview Feb 2022

PlanRock offers financial planning tools, investment portfolios, various levels of advice, and full-service support. Please contact 800-677-6025 or go to www.PlanRock.com for more information about how we can help you reach your goals.

© PlanRock Wealth Management, LLC. The content above is available for use only by authorized subscribers, clients and where permissible as such. This content is not authorized for resale. Past performance does not guarantee future results. The sources we use are believed to be reliable, but their accuracy is not guaranteed.