{"id":1486,"date":"2022-02-07T12:07:30","date_gmt":"2022-02-07T17:07:30","guid":{"rendered":"https:\/\/www.nepc.com\/private-wealth\/?p=1486"},"modified":"2022-02-09T13:25:01","modified_gmt":"2022-02-09T18:25:01","slug":"nepcs-january-2022-market-commentary","status":"publish","type":"post","link":"https:\/\/www.nepc.com\/private-wealth\/nepcs-january-2022-market-commentary\/","title":{"rendered":"NEPC&#8217;s January 2022 Market Commentary"},"content":{"rendered":"<div class=\"wpb-content-wrapper\">[vc_row][vc_column][vc_column_text uncode_shortcode_id=&#8221;261978&#8243;]Global equities sold-off in January as the Federal Reserve assumed a more hawkish stance as persistent inflation pressures pushed yields higher. Headline CPI increased 7% in 2021, marking the largest calendar year increase since 1981. While the Fed Open Market Committee met last month and announced it was holding rates steady at 0%-0.25%, Fed Chair Jerome Powell left the door open to further rate hikes in 2022 in addition to the three 25-basis-point hikes forecasted in the December meeting. As a result, the number of rate hikes in 2022, implied by the fed-fund futures, increased to four from three over the month.<\/p>\n<p>In equities, the S&amp;P 500 Index recorded its worst January since 2009, losing 5.2%. Notably, value outperformed growth as rising interest rates pressured higher-valuation growth companies. The Russell 1000 Value Index declined 2.3%, while the Russell 1000 Growth Index fell 8.6% \u2013 marking the largest outperformance of value since 2001. The Russell 2000 Index plunged 9.6% after briefly falling into bear-market territory, shaving off over 20% from its November highs. Non-U.S. equities were also down with the MSCI EAFE and MSCI Emerging Markets indexes shedding 4.8% and 1.9%, respectively.<\/p>\n<p>In fixed income, the U.S. Treasury curve flattened with 10-year yields rising 27 basis points, while two-year Treasury yields increased 44 basis points to 1.16% \u2013 the highest level since February 2020. Consistent with the risk-off sentiment, option-adjusted spreads on the Bloomberg U.S. Corporate High Yield Index rose 59 basis points to 3.42%, resulting in a 2.7% loss in January.<\/p>\n<p>Meanwhile, within real assets, higher energy prices fueled gains of 8.8% in the Bloomberg Commodity Index. Spot WTI crude oil prices were up 17%, ending the month at $88 a barrel\u2014the highest level since 2014\u2014amid escalated geopolitical tensions and lower energy stockpiles in the U.S.<\/p>\n<p>We remain constructive on public equities despite their recent performance and encourage adding to U.S. large-cap value exposure to help mitigate the impact of rising interest rates on portfolios. Despite the recent hawkish shift from the Fed, we still recommend investors maintain a dedicated allocation to safe-haven fixed income to support portfolio liquidity needs and provide downside protection in periods of stress.[\/vc_column_text][vc_single_image media=&#8221;1488&#8243; media_width_percent=&#8221;100&#8243; uncode_shortcode_id=&#8221;893971&#8243;][\/vc_column][\/vc_row]\n<\/div>","protected":false},"excerpt":{"rendered":"<p>[vc_row][vc_column][vc_column_text uncode_shortcode_id=&#8221;261978&#8243;]Global equities sold-off in January as the Federal Reserve assumed a more hawkish stance as persistent inflation pressures pushed [&hellip;]<\/p>\n","protected":false},"author":11,"featured_media":1488,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"content-type":"","footnotes":""},"categories":[12],"tags":[16,17,31,18,19,20,32,21,33,23],"class_list":["post-1486","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","tag-corporate-defined-benefit","tag-defined-contribution","tag-discretionary-services","tag-endowments-and-foundations","tag-healthcare","tag-insurance","tag-market-commentary","tag-private-wealth","tag-public","tag-taft-hartley"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>January 2022 Market Commentary<\/title>\n<meta name=\"description\" content=\"Global equities sold-off in January as the Federal Reserve assumed a more hawkish stance as persistent inflation pressures pushed yields higher.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.nepc.com\/private-wealth\/nepcs-january-2022-market-commentary\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"January 2022 Market Commentary\" \/>\n<meta property=\"og:description\" content=\"Global equities sold-off in January as the Federal Reserve assumed a more hawkish stance as persistent inflation pressures pushed yields higher.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.nepc.com\/private-wealth\/nepcs-january-2022-market-commentary\/\" \/>\n<meta property=\"og:site_name\" content=\"NEPC - Private Wealth\" \/>\n<meta property=\"article:published_time\" content=\"2022-02-07T17:07:30+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-02-09T18:25:01+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.nepc.com\/private-wealth\/wp-content\/uploads\/sites\/3\/2022\/02\/Jan-2022-Monthly-Return-Table.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1091\" \/>\n\t<meta property=\"og:image:height\" content=\"574\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"NEPC\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"NEPC\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.nepc.com\\\/private-wealth\\\/nepcs-january-2022-market-commentary\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.nepc.com\\\/private-wealth\\\/nepcs-january-2022-market-commentary\\\/\"},\"author\":{\"name\":\"NEPC\",\"@id\":\"https:\\\/\\\/www.nepc.com\\\/private-wealth\\\/#\\\/schema\\\/person\\\/291f8d98618e9073a335da2e099f0a7d\"},\"headline\":\"NEPC&#8217;s January 2022 Market Commentary\",\"datePublished\":\"2022-02-07T17:07:30+00:00\",\"dateModified\":\"2022-02-09T18:25:01+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.nepc.com\\\/private-wealth\\\/nepcs-january-2022-market-commentary\\\/\"},\"wordCount\":368,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\\\/\\\/www.nepc.com\\\/private-wealth\\\/#organization\"},\"image\":{\"@id\":\"https:\\\/\\\/www.nepc.com\\\/private-wealth\\\/nepcs-january-2022-market-commentary\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.nepc.com\\\/private-wealth\\\/wp-content\\\/uploads\\\/sites\\\/3\\\/2022\\\/02\\\/Jan-2022-Monthly-Return-Table.jpg\",\"keywords\":[\"Corporate Defined Benefit\",\"Defined Contribution\",\"Discretionary Services\",\"Endowments and Foundations\",\"Healthcare\",\"Insurance\",\"Market Commentary\",\"Private Wealth\",\"Public\",\"Taft-Hartley\"],\"articleSection\":[\"Blog\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/www.nepc.com\\\/private-wealth\\\/nepcs-january-2022-market-commentary\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.nepc.com\\\/private-wealth\\\/nepcs-january-2022-market-commentary\\\/\",\"url\":\"https:\\\/\\\/www.nepc.com\\\/private-wealth\\\/nepcs-january-2022-market-commentary\\\/\",\"name\":\"January 2022 Market Commentary\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.nepc.com\\\/private-wealth\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/www.nepc.com\\\/private-wealth\\\/nepcs-january-2022-market-commentary\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/www.nepc.com\\\/private-wealth\\\/nepcs-january-2022-market-commentary\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.nepc.com\\\/private-wealth\\\/wp-content\\\/uploads\\\/sites\\\/3\\\/2022\\\/02\\\/Jan-2022-Monthly-Return-Table.jpg\",\"datePublished\":\"2022-02-07T17:07:30+00:00\",\"dateModified\":\"2022-02-09T18:25:01+00:00\",\"description\":\"Global equities sold-off in January as the Federal Reserve assumed a more hawkish stance as persistent inflation pressures pushed yields higher.\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/www.nepc.com\\\/private-wealth\\\/nepcs-january-2022-market-commentary\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/www.nepc.com\\\/private-wealth\\\/nepcs-january-2022-market-commentary\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/www.nepc.com\\\/private-wealth\\\/nepcs-january-2022-market-commentary\\\/#primaryimage\",\"url\":\"https:\\\/\\\/www.nepc.com\\\/private-wealth\\\/wp-content\\\/uploads\\\/sites\\\/3\\\/2022\\\/02\\\/Jan-2022-Monthly-Return-Table.jpg\",\"contentUrl\":\"https:\\\/\\\/www.nepc.com\\\/private-wealth\\\/wp-content\\\/uploads\\\/sites\\\/3\\\/2022\\\/02\\\/Jan-2022-Monthly-Return-Table.jpg\",\"width\":1091,\"height\":574},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/www.nepc.com\\\/private-wealth\\\/nepcs-january-2022-market-commentary\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/www.nepc.com\\\/private-wealth\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"NEPC&#8217;s January 2022 Market Commentary\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/www.nepc.com\\\/private-wealth\\\/#website\",\"url\":\"https:\\\/\\\/www.nepc.com\\\/private-wealth\\\/\",\"name\":\"NEPC - Private Wealth\",\"description\":\"\",\"publisher\":{\"@id\":\"https:\\\/\\\/www.nepc.com\\\/private-wealth\\\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/www.nepc.com\\\/private-wealth\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\\\/\\\/www.nepc.com\\\/private-wealth\\\/#organization\",\"name\":\"NEPC Investment Consulting\",\"url\":\"https:\\\/\\\/www.nepc.com\\\/private-wealth\\\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/www.nepc.com\\\/private-wealth\\\/#\\\/schema\\\/logo\\\/image\\\/\",\"url\":\"https:\\\/\\\/www.nepc.com\\\/private-wealth\\\/wp-content\\\/uploads\\\/sites\\\/3\\\/2021\\\/03\\\/NEPC-logo.svg\",\"contentUrl\":\"https:\\\/\\\/www.nepc.com\\\/private-wealth\\\/wp-content\\\/uploads\\\/sites\\\/3\\\/2021\\\/03\\\/NEPC-logo.svg\",\"width\":80,\"height\":71,\"caption\":\"NEPC Investment Consulting\"},\"image\":{\"@id\":\"https:\\\/\\\/www.nepc.com\\\/private-wealth\\\/#\\\/schema\\\/logo\\\/image\\\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/www.nepc.com\\\/private-wealth\\\/#\\\/schema\\\/person\\\/291f8d98618e9073a335da2e099f0a7d\",\"name\":\"NEPC\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/2ed9a521d1e21f9fd928fd92480346ca836601597638d76dde57cf8516fd2e1a?s=96&d=mm&r=g\",\"url\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/2ed9a521d1e21f9fd928fd92480346ca836601597638d76dde57cf8516fd2e1a?s=96&d=mm&r=g\",\"contentUrl\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/2ed9a521d1e21f9fd928fd92480346ca836601597638d76dde57cf8516fd2e1a?s=96&d=mm&r=g\",\"caption\":\"NEPC\"},\"url\":\"https:\\\/\\\/www.nepc.com\\\/private-wealth\\\/author\\\/nepc\\\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"January 2022 Market Commentary","description":"Global equities sold-off in January as the Federal Reserve assumed a more hawkish stance as persistent inflation pressures pushed yields higher.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.nepc.com\/private-wealth\/nepcs-january-2022-market-commentary\/","og_locale":"en_US","og_type":"article","og_title":"January 2022 Market Commentary","og_description":"Global equities sold-off in January as the Federal Reserve assumed a more hawkish stance as persistent inflation pressures pushed yields higher.","og_url":"https:\/\/www.nepc.com\/private-wealth\/nepcs-january-2022-market-commentary\/","og_site_name":"NEPC - Private Wealth","article_published_time":"2022-02-07T17:07:30+00:00","article_modified_time":"2022-02-09T18:25:01+00:00","og_image":[{"width":1091,"height":574,"url":"https:\/\/www.nepc.com\/private-wealth\/wp-content\/uploads\/sites\/3\/2022\/02\/Jan-2022-Monthly-Return-Table.jpg","type":"image\/jpeg"}],"author":"NEPC","twitter_card":"summary_large_image","twitter_misc":{"Written by":"NEPC","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.nepc.com\/private-wealth\/nepcs-january-2022-market-commentary\/#article","isPartOf":{"@id":"https:\/\/www.nepc.com\/private-wealth\/nepcs-january-2022-market-commentary\/"},"author":{"name":"NEPC","@id":"https:\/\/www.nepc.com\/private-wealth\/#\/schema\/person\/291f8d98618e9073a335da2e099f0a7d"},"headline":"NEPC&#8217;s January 2022 Market Commentary","datePublished":"2022-02-07T17:07:30+00:00","dateModified":"2022-02-09T18:25:01+00:00","mainEntityOfPage":{"@id":"https:\/\/www.nepc.com\/private-wealth\/nepcs-january-2022-market-commentary\/"},"wordCount":368,"commentCount":0,"publisher":{"@id":"https:\/\/www.nepc.com\/private-wealth\/#organization"},"image":{"@id":"https:\/\/www.nepc.com\/private-wealth\/nepcs-january-2022-market-commentary\/#primaryimage"},"thumbnailUrl":"https:\/\/www.nepc.com\/private-wealth\/wp-content\/uploads\/sites\/3\/2022\/02\/Jan-2022-Monthly-Return-Table.jpg","keywords":["Corporate Defined Benefit","Defined Contribution","Discretionary Services","Endowments and Foundations","Healthcare","Insurance","Market Commentary","Private Wealth","Public","Taft-Hartley"],"articleSection":["Blog"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/www.nepc.com\/private-wealth\/nepcs-january-2022-market-commentary\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/www.nepc.com\/private-wealth\/nepcs-january-2022-market-commentary\/","url":"https:\/\/www.nepc.com\/private-wealth\/nepcs-january-2022-market-commentary\/","name":"January 2022 Market Commentary","isPartOf":{"@id":"https:\/\/www.nepc.com\/private-wealth\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.nepc.com\/private-wealth\/nepcs-january-2022-market-commentary\/#primaryimage"},"image":{"@id":"https:\/\/www.nepc.com\/private-wealth\/nepcs-january-2022-market-commentary\/#primaryimage"},"thumbnailUrl":"https:\/\/www.nepc.com\/private-wealth\/wp-content\/uploads\/sites\/3\/2022\/02\/Jan-2022-Monthly-Return-Table.jpg","datePublished":"2022-02-07T17:07:30+00:00","dateModified":"2022-02-09T18:25:01+00:00","description":"Global equities sold-off in January as the Federal Reserve assumed a more hawkish stance as persistent inflation pressures pushed yields higher.","breadcrumb":{"@id":"https:\/\/www.nepc.com\/private-wealth\/nepcs-january-2022-market-commentary\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.nepc.com\/private-wealth\/nepcs-january-2022-market-commentary\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.nepc.com\/private-wealth\/nepcs-january-2022-market-commentary\/#primaryimage","url":"https:\/\/www.nepc.com\/private-wealth\/wp-content\/uploads\/sites\/3\/2022\/02\/Jan-2022-Monthly-Return-Table.jpg","contentUrl":"https:\/\/www.nepc.com\/private-wealth\/wp-content\/uploads\/sites\/3\/2022\/02\/Jan-2022-Monthly-Return-Table.jpg","width":1091,"height":574},{"@type":"BreadcrumbList","@id":"https:\/\/www.nepc.com\/private-wealth\/nepcs-january-2022-market-commentary\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.nepc.com\/private-wealth\/"},{"@type":"ListItem","position":2,"name":"NEPC&#8217;s January 2022 Market Commentary"}]},{"@type":"WebSite","@id":"https:\/\/www.nepc.com\/private-wealth\/#website","url":"https:\/\/www.nepc.com\/private-wealth\/","name":"NEPC - Private Wealth","description":"","publisher":{"@id":"https:\/\/www.nepc.com\/private-wealth\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.nepc.com\/private-wealth\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/www.nepc.com\/private-wealth\/#organization","name":"NEPC Investment Consulting","url":"https:\/\/www.nepc.com\/private-wealth\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.nepc.com\/private-wealth\/#\/schema\/logo\/image\/","url":"https:\/\/www.nepc.com\/private-wealth\/wp-content\/uploads\/sites\/3\/2021\/03\/NEPC-logo.svg","contentUrl":"https:\/\/www.nepc.com\/private-wealth\/wp-content\/uploads\/sites\/3\/2021\/03\/NEPC-logo.svg","width":80,"height":71,"caption":"NEPC Investment Consulting"},"image":{"@id":"https:\/\/www.nepc.com\/private-wealth\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/www.nepc.com\/private-wealth\/#\/schema\/person\/291f8d98618e9073a335da2e099f0a7d","name":"NEPC","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/2ed9a521d1e21f9fd928fd92480346ca836601597638d76dde57cf8516fd2e1a?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/2ed9a521d1e21f9fd928fd92480346ca836601597638d76dde57cf8516fd2e1a?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/2ed9a521d1e21f9fd928fd92480346ca836601597638d76dde57cf8516fd2e1a?s=96&d=mm&r=g","caption":"NEPC"},"url":"https:\/\/www.nepc.com\/private-wealth\/author\/nepc\/"}]}},"_links":{"self":[{"href":"https:\/\/www.nepc.com\/private-wealth\/wp-json\/wp\/v2\/posts\/1486","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nepc.com\/private-wealth\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nepc.com\/private-wealth\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nepc.com\/private-wealth\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nepc.com\/private-wealth\/wp-json\/wp\/v2\/comments?post=1486"}],"version-history":[{"count":0,"href":"https:\/\/www.nepc.com\/private-wealth\/wp-json\/wp\/v2\/posts\/1486\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.nepc.com\/private-wealth\/wp-json\/wp\/v2\/media\/1488"}],"wp:attachment":[{"href":"https:\/\/www.nepc.com\/private-wealth\/wp-json\/wp\/v2\/media?parent=1486"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nepc.com\/private-wealth\/wp-json\/wp\/v2\/categories?post=1486"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nepc.com\/private-wealth\/wp-json\/wp\/v2\/tags?post=1486"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}