January 2022 - The stock market, as defined by the S&P 500, ended 2021 near an all-time high, but has since slid 8% in a relatively short timeframe. We believe inflation fears, the Federal Reserve’s tightening of monetary policy, and fears of Russia invading Ukraine are the primary triggers for the selling. While inflation and the Fed have been known to investors for some time, the Russia situation is new and potentially concerning should the situation escalate. Nevertheless, we believe this is a normal and healthy correction that could stabilize and reverse with some good news. For reference, a correction is typically defined as a 10% (or more) decline but there is no hard and fast rule to this. In just the past few years the market has experienced three corrections of 8-19%, not including the pandemic crash (see below table). Each time, the market resumed its growth trend within a relatively short period (see chart below).