In the near term, the outlook for the exact track the market will follow is uncertain because of all these factors that leave the market searching for direction.

Why are stocks and bonds declining together? The Federal Reserve is raising interest rates and shrinking its balance sheet by selling bonds, which pressures both stock and bond valuations.

Low-interest rates and bond purchases stabilized the U.S. economy during the Covid pandemic, but removing the two pandemic-era monetary policies is proving to be enormously disruptive.

Recession fears may make the Fed's task of stabilizing prices harder, as painfully higher interest rates fight inflation underpinned by supply constraints.

In our view, it is the sum total of rate hikes that matters in terms of the future value of equities, as opposed to simply timing and speed.

January 2022’s personal savings rate of 6.1% was the lowest since December 2013.

Our view is that private markets with limited liquidity are the most significant risk to the public equity market. The Fed tightening monetary policy, raising rates, and shrinking its balance sheet point to the desire to curb demand and limit risk-taking.

The Fed tightening up is not necessarily an indication that inflation will ease. While this is the idea behind their actions, historically, it is not always the result.

There was no shortage of events for the market to navigate, including the Federal Reserve’s first interest rate increase since December 2018, Russia’s invasion of Ukraine, and stubbornly high inflation pressures.

The Federal Reserve’s goal is to raise interest rates to ease inflation pressure, but it could have the added side effect of slower economic growth.

The stock market’s bumpy ride continued during February. Last month’s top news story was rising geopolitical tensions and Russia’s invasion of Ukraine.

Geopolitical risk is rising as tensions between Russia and Ukraine escalate in Eastern Europe. Financial markets are watching closely as the situation evolves.