Monthly Market Update (December): 3 Things You Need to Know

Global equities ended the year near record highs even as the current surge in COVID-19 cases surpassed peak levels last seen since the start of the pandemic. Here are 3 things you need to know:

  1. The S&P 500 finished up +27% for 2021 hitting 70 all-time highs and completing its best three-year stretch since 1999 – “Let’s Go Crazy”!
  2. Not everyone was “Partying Like It’s 1999”. The areas of weakness in 2021 were bonds across the board (both in nominal and especially in real terms), precious metals, and emerging market stocks.
  3. Investors were “Still Waiting” for market volatility with only one 5% market decline in 2021 and no corrections. Will 2022 be the year “When Doves Cry”?


  1. Sources: J.P. Morgan Asset Management – Economic Update; Bureau of Economic Analysis (; Bureau of Labor Statistics (; Federal Open Market Committee (
  2. Indices:
    • The Barclays Aggregate Bond Index is a broad-based index used as a proxy for the U.S. bond market. Total return quoted.
    • The S&P 500 is designed to be a leading indicator of U.S. equities and is commonly used as a proxy for the U.S. stock market. Price return quoted.
    • The MSCI ACWI ex-US Index captures large and mid-cap representation across 22 of 23 developed market countries (excluding the U.S.) and 27 emerging market countries.  The index covers approximately 85% of the global equity opportunity set outside the U.S. Price return quoted.
    • The MSCI Emerging Markets Index captures large and mid-cap segments in 26 emerging markets. Price return quoted (USD).

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