Edward Jones - Mae Luchetti: Financial Advisor

2022 proved to be the most challenging year for investors in more than a decade as multiple headwinds hit the economy and the markets1.

Equity markets fell over 2.0% last week, as market sentiment seemed to turn lower after a more hawkish Fed meeting and weakening retail-sales data, and despite better-than-expected CPI inflation data for November.

The rally that began in mid-October stalled last week, as markets have grown more anxious over the outlook for growth in the year ahead.

The recovery in financial markets has gained steam as we navigate the final stretch of the year.

vestment portfolios have faced turbulent headwinds this year. Elevated and persistent inflation has driven many central banks to move into restrictive monetary-policy territory to soften demand.

Since 2009, the fed funds rate has averaged 0.6%, spending just 469 days above 2% (9% of the time)1. Similarly, the 10-year Treasury yield has averaged 2.3% over that time, topping 3% for less than 600 days (17% of the time)1.

Last week's cooler-than-expected inflation data offered some relief to investors and the Fed, potentially indicating that October could be the start of a disinflationary trend that lasts through next year.

Last week the Federal Reserve (Fed) raised the fed funds rate by 75 basis points (0.75%) at its November FOMC meeting.

A tug-of-war may be the most appropriate metaphor to describe last week's price action in the markets. Pulling at one end of the rope were disappointing earnings results from mega-cap tech names and signs of economic activity softening.

Markets showed a welcome glint of resiliency last week, holding on despite an inflation report that could have added to the chorus of concerns that the Fed is destined to overstay its welcome.