The Financial Quarterly

2nd Quarter 2022

Brian Fry, CFP®
Safe Landing Financial LLC

The second quarter of 2022 saw a grueling bear market ride over the last few months. Losses were highlighted by high inflation, rising interest rates, and recession concerns.1

However, there might be some hope ahead.

Let's take a look at how markets performed and what we might look forward to in the months to come.

Looking Back

How Did Markets Perform Last Quarter?

S&P 500


The broader U.S. market sank on interest rate and economic concerns.1



The tech-focused NASDAQ was clobbered by higher interest rates and pricey valuations.2

DOW 30


Blue chip stocks also dropped in Q2 along with the broader market.3

Looking Ahead

What Could We See In the Months Ahead?

These are challenging times to make predictions about the future. The following gauges represent a forward look at what some analysts think we might see over the next few months. Since a simple projection can’t represent all opinions or probabilities, I’ve highlighted risks and opportunities for each.

U.S. Economic Outlook

Negative Positive

Risks: High inflation, interest rate hikes, and ongoing geopolitical and supply chain issues could tip the U.S. into a recession.
Opportunities: A strong labor market, household wealth, and consumer spending could drive growth.4

Equity Outlook

Negative Positive

Risks: Uncertainty about interest rates and the economy are likely to further weigh on markets.
Opportunities: Strong corporate earnings could drive fundamental growth; stocks could bounce back if inflation stabilizes.5

Consumer Sentiment

Negative Positive

Risks: High prices and recession worries could dent confidence.
Opportunities: A still-healthy job market, high home values, and savings could drive strong sentiment.5,6

Monetary Policy

Negative Positive

Risks: The Federal Reserve may raise rates too high, too fast, triggering a “hard landing” by slowing growth too much.
Opportunities: The Fed could execute on its vision and successfully lower inflation without a recession.4,6

Geopolitical Risk

Negative Positive

Risks: War, death, and economic disruption in Ukraine may continue, causing continued uncertainty and damage.
Opportunities: A peaceful resolution may be found with Russia.4


Negative Positive

Risks: High inflation could persist, changing consumer spending patterns and pushing the Fed to raise rates aggressively.
Opportunities: Slowing inflation could moderate interest rate hikes and relieve pressure on consumers.4,6

"Exiting markets during a downturn might be appealing, but you risk missing out on future growth."

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Bottom Line

Critical Takeaways for Savvy Investors

Raise your hand if you’re unsure of what could happen in the coming months.

Is your hand up? So is mine. I always say if I knew, I would probably retire somewhere in the Carribbean.

Markets and the economy face a lot of uncertainty.

There’s quite a bit of hope ahead: we have a resilient economy, the jobs market remains healthy, and stocks could bounce back if inflation and interest rate hikes stabilize.

Bear markets are rough, but attempting to time the market and selling now may cause long-term damage to your wealth if you miss the recovery. 

What’s challenging is separating our emotions from analysis of what might be coming (especially when we’re in murky and uncharted waters).

We’re facing A LOT of uncertainty this year, and it’s not likely to resolve into certainty any time soon.

That's why it's important to stick with an investment strategy based on your financial plan. 

Times like these favor flexibility, resilience, and a focus on long-term financial planning goals.

Questions on investments or financial planning? Please let me know how I can help.

Brian Fry, CFP®
Safe Landing Financial LLC