2021 closed as a banner year for many investors. Although history will record the Covid pandemic for causing one of the sharpest recessions ever felt by the global economy, the rebound investors continue to see nearly two years later has been just as remarkable. Postpandemic equity markets in 2021 saw the S&P 500 create 70 record closes, the last one on Wednesday, December 29. The DJIA also realized 45 record closes in 2021. (Source: Barron’s 12/31/21)
Happy New Year and welcome to 2022! We hope that you and your family had an enjoyable holiday season. We look forward to what this new year has to offer.
Equity markets ended the third quarter with mixed results. While the quarter started with strong earnings reports, lifting many large US stocks during the summer, it ended with the Federal Reserve (Fed) striking a dovish tone, confirming its hesitance to tighten policy too fast.
In the first half of 2021, investors welcomed a new administration in the United States of America, saw the reopening of many countries, experienced volatility in equity markets and ended a second quarter that produced many new highs.
What a difference a year makes. The first quarter of 2021 included the one-year anniversary from the March 2020 equity market’s bottom. For the first quarter of 2021, equity markets encountered volatility but still created all-time highs. With the potential of herd immunity following mass vaccinations, investors finished the quarter with hopes that the end of the pandemic could be seen by mid-year.
Income tax is a large revenue source for the United States government. While tax rates have changed many times, since the 1860’s, the United States has used a “progressive” tax code.