In case you missed it, we covered a lot of ground on the impact 2022 market predictions can have on your business and private investment growth strategies with a panel of financial experts: Claire Ellerhorst, Assistant Vice President at 5/3 Bank; Michael Rarey, Principal at Capital Strategies; and Terry Bressler, Managing Partner at Prairie Capital Advisors.
Our panel has put the data behind the supply chain, labor force, inflation indicators and more through the wringer – model after model – to provide you with sound analysis of what you can expect in 2022.
Here's what we learned:
- While inflationary pressures and supply chain problems that plagued 2021 will continue to be a factor, signs indicate they may have peaked.
- The Fed is changing its tone but is still reluctant to raise rates aggressively and should still be taking a stimulative stance even as rates rise over the course of the year.
- Consumers are learning to live with COVID, and data shows the economy is experiencing less and less of a dip with each surge.
- Supply chain issues have guided the valuation of mergers and acquisitions, but not the participation – still plenty of willing buyers who aren’t going to overpay. Still firmly a seller’s market, though.
- The labor market continues to improve slowly. Re-evaluate what you need in your job descriptions and be creative and flexible with qualifications for employment.
- Supply chain pressures are waning, but the backlog of goods at major ports will continue to make a return to normal, hopefully by the end of Q2. The real test will be if those pressures can be mitigated when they return late summer in preparation for the winter holiday buying season.
- Risk management is key right now. Stress-test your financial assets – business and personal – to see how they fare if there is a Fed policy mistake.