Market Updates

Q1 2022 Market Report

Todd Brundage
April 6, 2022

The first quarter of 2022 was a difficult quarter for most economies and markets.

The first quarter of 2022  was a difficult quarter for most economies and markets.  Just when the markets were hoping to see relief from pandemic supply and labor shortages, Russia attacked Ukraine.  In reaction many of the world’s largest economies employed restrictions against Russia creating a rise in prices and shortages in commodities - also stoking inflation.  Both the stock and bond markets were down in every sector.  Commodities, however, saw robust returns.

In the stock market, value stocks outperformed growth stocks by almost double digits throughout world markets reversing a trend we have seen the past decade, where growth stocks have surprisingly outperformed.  And, small cap stocks underperformed large caps in every market except emerging markets.

Bonds saw their worst quarterly performance since 1973.  Interest rates increased across all maturities in the US and international bond markets.  Longer duration bonds performed worse and the yield curve actually inverted when the 10 yr. Treasury Note yield was lower than the 2 yr. Treasury note yield.

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