S&P 500 Index: Fundamentals still point to above-trend growth in 2022 – JP Morgan

2021 has been a quiet year for markets; despite the recent increase in volatility, the S&P 500 is down less than 3% from its all-time high. Should we expect a year-end correction? While that is not JP Morgan’s base case, even if they do, the fundamentals still point to above-trend growth in 2022.

Three key drivers of economic growth in 2022

“Significant restrictions are not our base case for the US, and omicron seems to have had a limited impact on aggregate mobility thus far.”

“As we look ahead to 2022, case growth should slow, economic growth should remain solid, and Fed policy should become less easy, but not necessarily tight.”

“We continue to view any material pullback as a buying opportunity, and do not believe investors should meaningfully deviate from their current asset allocation.”