Markets and Economy

Q1 2022 Economic & Market Outlook

By Eric Trousil • January 26, 2022

2 minute read time

Executive Summary

Despite an extended pandemic and the uncertainty that comes with it, the economy and financial markets performed admirably in 2021. Stock returns exceeded expectations, rewarding investors with another year of excellent growth. As we enter 2022, we believe the economy is poised for another year of solid growth as the recovery transitions from stimulus-driven to one based on traditional fundamentals. 

The Economy

  • Following a very strong recovery in 2021, U.S. economic growth is expected to slow but remain robust. We expect GDP growth to exceed 4% in 2022.
  • Consumer spending will continue to drive the economy. Despite record high home prices, the housing sector should continue to grow faster than the overall economy.
  • Supply chain disruptions and a shrinking labor market have pushed inflation to the highest annualized level in nearly 40 years. We expect these pressures to ease in 2022. Inflation levels will remain elevated but closer to normal as the year progresses.

Hear From Our Team

Listen in as Jason Herried and Ron Alberts discuss the economy and our outlook on the fixed income and equity markets. They wrap up with how we are currently positioning portfolios.

Read The Full Report

Download a copy of full report providing our outlook on the economy, markets and risks for 2022.

ABOUT THE AUTHORS

Eric Trousil

Eric Trousil

SVP Wealth Portfolio Manager | Johnson Financial Group

As Senior Vice President, Wealth Portfolio Manager, Eric works with individuals and non-profit organizations to create customized investment solutions. With a strong emphasis on providing a personalized experience, Eric actively listens to each client’s unique needs to deliver the most relevant financial solutions.

Jason Herried

Jason Herried

SVP Director of Equity Strategies, Portfolio Manager CFA® | Johnson Financial Group

As Senior Vice President, Director of Equity Strategy and Wealth Portfolio Manager, Jason develops and builds customized portfolio strategies for our individual, institutional and non–profit clients. This includes investment policy review and development, portfolio construction, manager and security selection and performance reporting. Jason also serves as a member of the firm's Investment Committee and leads the Equity Strategy Group.

Ron Alberts

Ron Alberts

SVP, Director of Fixed Income Strategies, Portfolio Mgr CFA® | Johnson Financial Group

As SVP Director of Fixed Income Strategies Group and Portfolio Manager, Ron manages client portfolios, leads the fixed income team, and is a member of the company's Investment Committee. With a broad range of experience across many client and investment types, he is skilled in managing equity and fixed income portfolios and portfolio teams as well as leading investment strategy.

This information is for educational and illustrative purposes only and should not be used or construed as financial advice, an offer to sell, a solicitation, an offer to buy or a recommendation for any security. Opinions expressed herein are as of the date of this report and do not necessarily represent the views of Johnson Financial Group and/or its affiliates. Johnson Financial Group and/or its affiliates may issue reports or have opinions that are inconsistent with this report. Johnson Financial Group and/or its affiliates do not warrant the accuracy or completeness of information contained herein. Such information is subject to change without notice and is not intended to influence your investment decisions. Johnson Financial Group and/or its affiliates do not provide legal or tax advice to clients. You should review your particular circumstances with your independent legal and tax advisors. Whether any planned tax result is realized by you depends on the specific facts of your own situation at the time your taxes are prepared. Past performance is no guarantee of future results. All performance data, while deemed obtained from reliable sources, are not guaranteed for accuracy. Not for use as a primary basis of investment decisions. Not to be construed to meet the needs of any particular investor. Asset allocation and diversification do not assure or guarantee better performance and cannot eliminate the risk of investment losses. Certain investments, like real estate, equity investments and fixed income securities, carry a certain degree of risk and may not be suitable for all investors. An investor could lose all or a substantial amount of his or her investment. Johnson Financial Group is the parent company of Johnson Bank, Johnson Wealth Inc. and Johnson Insurance Services LLC. NOT FDIC INSURED * NO BANK GUARANTEE * MAY LOSE VALUE