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Feb 03, 2022

January 2022

Provided by YCharts

Equities were off to a rough start in 2022
, as the S&P 500 fell 5.2% and the Nasdaq 9%. Only one sector was positive in January: Energy, which shot 18.8% higher as tensions between Russia and Ukraine fueled the possibility of reduced oil supply. Though Financials were flat, Consumer Discretionary and other cyclical sectors took the worst hits in January.

US treasury rates got a lift in January on news that the Federal Reserve would accelerate the timeline for raising rates. (Hint: stocks didn’t take too kindly to this, nor to speculation by some analysts that 6 to 7 rate hikes could come this year.) The 6-Month Treasury Rate increased 30 basis points to 0.49%, while the 10-Year rose from 1.52% to 1.79%.

We saw the unemployment rate fall below 4% for the first time since February 2020. However, inflation continues to remain at an elevated 7%. Instruments perceived as inflation “hedges” or “safe havens” have failed to take off as well. The price of gold fell 1% in January and has traded sideways over the past twelve months, while the new kids on the inflation hedge block, cryptocurrencies, plummeted in January. 

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