NEW YORK, Dec 23 – The U.S.
With a little over a week left in the year, the S&P 500 is on track for an 87% gain since the end of 2018, its best three-year performance in more than two decades.
Gains in the year following such periods have on average been weaker, with the index averaging 8.4%, compared with its overall average total return of 11.6%, DataTrek found.
“We still see a decent environment for equity investors in 2022, although we don’t expect the types of gains that we have seen,” said James Ragan, director of wealth management research at D.A.
government lockdowns related to the virus will return, consumers “may spend more cautiously amid a renewed surge in Covid infections,” according to a recent note by Oxford Economics, which projected consumer spending rising by 4.3% in 2022 following record growth of 8.1% this year.
For example, those stocks stand to be particularly sensitive to higher yields because their valuations depend more on future earnings.
Broader markets could be in trouble if mammoth growth stocks falter.
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