Reflecting on stock market performance over the last few years reminds me of an expression from the old days when I was a stockbroker.

"Bulls make money, bears make money and pigs get slaughtered."

The S&P 500 stock index advanced 29% in 2019, 16% in 2020 and about 27% in 2021.

Since stocks average about 10% per year, it's highly unlikely these returns are likely to repeat. Sooner or later, unless the world has changed in a fundamental way, markets will ultimately regress to the mean. In other words, they'll balance things out with a crummy year or two.

Will 2022 be the year it begins?

One catalyst for lower stock prices could be rising interest rates. Odds are that the Federal Reserve will begin raising rates as early as March of 2022. While rate hikes aren't necessarily devastating for stock prices, they're not the best thing for them either, particularly for more speculative, less profitable companies.

So does all this negative news mean you should head for the sidelines in 2022?

That's what this week's "Money!" podcast is about. We're going to talk about where things are likely to go this year with stocks, interest rates and housing prices. And not only are we going to attempt some predictions, we'll be making some recommendations as well.

As usual, my co-host will be financial journalist Miranda Marquit. Listening in and sometimes contributing is producer and novice investor Aaron Freeman.

Want more information? Check out these resources:
Forbes: Experts Predict What The Housing Market Will Look Like In 2022
NBC News: From real estate to inflation, here's what to expect from the economy in 2022
Redfin: Redfin Predicts a More Balanced Housing Market in 2022
Barron's: Don't Expect Big Returns From the Stock Market Next Year as Interest Rates Rise
Marketwatch: Leading economists and analysts on the 4 things to look for in the housing market in 2022
US News: Stock Market Trends for 2022
CNBC: The majority of Fed members forecast three interest rate hikes in 2022 to fight inflation
Stacy's stock portfolio
Subscribe to the Money Talks News newsletter
Take our course The Only Retirement Guide You'll Ever Need
Take our course Money Made Simple
Miranda Marquit's website

Reflecting on stock market performance over the last few years reminds me of an expression from the old days when I was a stockbroker.
"Bulls make money, bears make money and pigs get slaughtered."
The S&amp;P 500 stock index advanced 29% in 2019, 16% in 2020 and about 27% in 2021.
Since stocks average about 10% per year, it's highly unlikely these returns are likely to repeat. Sooner or later, unless the world has changed in a fundamental way, markets will ultimately regress to the mean. In other words, they'll balance things out with a crummy year or two.
Will 2022 be the year it begins?
One catalyst for lower stock prices could be rising interest rates. Odds are that the Federal Reserve will begin raising rates as early as March of 2022. While rate hikes aren't necessarily devastating for stock prices, they're not the best thing for them either, particularly for more speculative, less profitable companies.
So does all this negative news mean you should head for the sidelines in 2022?
That's what this week's <a href="https://www.moneytalksnews.com/podcasts/">"Money!" podcast</a> is about. We're going to talk about where things are likely to go this year with stocks, interest rates and housing prices. And not only are we going to attempt some predictions, we'll be making some recommendations as well.
As usual, my co-host will be financial journalist <a href="https://www.moneytalksnews.com/author/mirandamarquit/">Miranda Marquit</a>. Listening in and sometimes contributing is producer and novice investor <a href="https://www.moneytalksnews.com/author/aaronfreeman/">Aaron Freeman</a>.
Want more information? Check out these resources:
<ul>
<li>Forbes: <a href="https://www.forbes.com/sites/brendarichardson/2021/12/13/experts-predict-what-the-housing-market-will-look-like-in-2022/">Experts Predict What The Housing Market Will Look Like In 2022</a></li>
<li>NBC News: <a href="https://www.nbcnews.com/business/economy/real-estate-inflation-expect-economy-2022-rcna10044">From real estate to inflation, here's what to expect from the economy in 2022</a></li>
<li>Redfin: <a href="https://www.redfin.com/news/Housing-Market-Predictions-2022/">Redfin Predicts a More Balanced Housing Market in 2022</a></li>
<li>Barron's: <a href="https://www.barrons.com/articles/stock-market-economy-inflation-performance-outlook-51639782340">Don't Expect Big Returns From the Stock Market Next Year as Interest Rates Rise</a></li>
<li>Marketwatch: <a href="https://www.marketwatch.com/picks/if-the-market-is-cooling-down-its-only-by-a-few-degrees-leading-economists-and-analysts-on-what-to-look-for-in-the-housing-market-in-2022-01639758149">Leading economists and analysts on the 4 things to look for in the housing market in 2022</a></li>
<li>US News: <a href="https://money.usnews.com/investing/investing-101/articles/stock-market-trends-for-2022">Stock Market Trends for 2022</a></li>
<li>CNBC: <a href="https://www.cnbc.com/2021/12/15/the-majority-of-fed-members-forecast-three-interest-rate-hikes-in-2022-to-fight-inflation.html">The majority of Fed members forecast three interest rate hikes in 2022 to fight inflation</a></li>
<li><a href="https://docs.google.com/spreadsheets/d/1h09OsyC3tPHYoSxJEsmo97mciSKfA1w3IbsDRCWMLpQ/edit?usp=sharing">Stacy's stock portfolio</a></li>
<li>Subscribe to the <a href="https://www.moneytalksnews.com/#newsletter">Money Talks News newsletter</a></li>
<li>Take our course&nbsp;<a href="https://unb.moneytalksnews.com/retirement-guide/">The Only Retirement Guide You'll Ever Need</a></li>
<li>Take our course&nbsp;<a href="https://www.moneytalksnews.com/courses/money-made-simple/">Money Made Simple</a></li>
<li><a href="http://mirandamarquit.com">Miranda Marquit's website</a></li>
</ul>

Welcome to Stacy Johnson's "Money!" A podcast devoted to everything money: how to get it, how to grow it and how to keep it. From the creators of MoneyTalksNews.com, a leading source of personal finance news and advice since 1991.

Money! with Stacy Johnson

What to Expect for Stocks, Interest Rates and Housing This Year

https://omny.fm/api/orgs/67ee9ddc-11a3-4cec-841d-ac9a015d5b41/clips/b6d69996-db60-49d4-8665-ae20012f0eb0/transcript

Transcript

Advertisement