We enter 2022 in the midst of market angst stemming from Federal Reserve tightening policies, continued COVID concerns, inflation worries, and geopolitical tensions. Add to that list a stock market in the US that has become detached from fundamentals on many metrics, and it creates an environment where doomsday prophecies fill the headlines.

Monday morning brought another wave of red to global equity markets. In the US, the S&P 500 is about 4% off its high, the Dow Jones is about 5% off, and the NASDAQ is about 7% off its all-time high. Small-cap stocks are nearly 13% off their early November highs. These drawdowns come as unwelcomed early holiday presents, given the epic run higher we’ve seen in equity markets since the initial pandemic recovery about 20 months ago.