February 2022 Market Update

We expect inflation and the Federal Reserve’s policy response to inflation to be key drivers of equity and fixed income market performance throughout this year. We have taken steps to reduce our exposure to assets that are likely to be most negatively impacted by rising rates, both for equities and for fixed income. While inflation and Fed policy will continue to cause some disruptions in the markets, our longer-term positive outlook remains. Some of the key points for February’s update are:

• In recent news, Germany has now halted the Nord Stream 2 pipeline in response to Russia’s recognition of two Russian-controlled statelets in the Donbas region of Ukraine.
  
• The January jobs report was strong, showing how businesses are becoming less concerned about the pandemic as hiring continues.
  
• Federal Reserve policy will be shifting to combat and slow the rate of inflation.

We hope you find this video educational and informative. If you have any questions, please reach out to your advisor. As always, thank you for putting your trust in the Merit team.​​