Equities fell last week for the 7th time in 2022. The S&P 500 index returned -2.84% as geopolitical risks continued to weigh on equity returns. Last week, inflation fears gripped markets after the CPI was announced 7.9% higher than last February, the highest in over 40 years. Energy prices skyrocketed as the Russian war in Ukraine pushed the odds of a supply shock higher. Oil peaked on Tuesday at $123.70 per barrel for WTI after the U.S. decided to ban imports of Russian oil. Energy was the top performing sector in the S&P 500.
The immediate reaction to an economic downturn is typically one of panic. You may have fears about losing your job, the rising costs of things,