SoFi’s Liz Young on the 2022 Investing Outlook

SoFi’s head of investment strategy sees rising rates as one of the hurdles facing stocks in 2022.

Photo of Liz Young's face
(Image credit: Emily Andrews)

Liz Young is head of investment strategy for personal finance firm SoFi.

What’s ahead for stocks in 2022? I would say that in 2022, we’re going to be transitioning back to a more normal market. Normal price returns on the S&P 500 are in the 7% to 9% range (slightly higher with dividends reinvested). The reason I wouldn’t get off-the-charts bullish is that we’re entering an environment in which artificial liquidity is starting to dry up. The Federal Reserve is taking its foot off the pedal slightly. If market expectations are correct, the Fed’s program of tapering its bond purchases, which were put in place to stimulate the economy, will finish around June of 2022. I actually think they may taper a little more quickly than that. Later in 2022, we could see our first rate hike of this expansion. Those are two things that the markets will have to trudge through.

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Anne Kates Smith
Executive Editor, Kiplinger's Personal Finance

Anne Kates Smith brings Wall Street to Main Street, with decades of experience covering investments and personal finance for real people trying to navigate fast-changing markets, preserve financial security or plan for the future. She oversees the magazine's investing coverage,  authors Kiplinger’s biannual stock-market outlooks and writes the "Your Mind and Your Money" column, a take on behavioral finance and how investors can get out of their own way. Smith began her journalism career as a writer and columnist for USA Today. Prior to joining Kiplinger, she was a senior editor at U.S. News & World Report and a contributing columnist for TheStreet. Smith is a graduate of St. John's College in Annapolis, Md., the third-oldest college in America.