Market Ends a Roaring Year, Then Turns Down First Quarter

A record stock market year ended with the S&P up 27 percent for the year, its third year of double-digit gains. But mostly due to the variant Omicron. a surging rate of inflation (up 7%), and supply and employment disruptions, the market has receded the first two weeks in what appears to be a weak first quarter.

The outlook improves over the entire year, but there is considerable uncertainty, with some forecasters predicting a down market in 2022 and others a more moderate continuation of the recovery. The politics of 2022 suggest support for higher rates as inflation has gained attention, but D.C. wants to avoid a recession 2023.