Hello, this is James Mayer, Branch Manager, from the Huffman Mayer Paolo Wealth Management group of Wells Fargo Advisors.

Hello, this is James Mayer, Branch manager for the Huffman Mayer Wealth Management group of Wells Fargo advisors. We are excited to have you here for a special New Year’s edition of The Market Recap.

We hope you and all of your friends and family have had a wonderful holiday. Let’s hear from Phil Anderson concerning our three recaps of December, starting off with the Omicron variant.

Thanks James.

Since Omicron was first detected on November 26, 2021, the CDC had stated that the variant has grown to be dominant in some parts of the world, and has gained a significant foothold in the U.S.A. since it was first diagnosed on 12/1/21. Early statistics suggest that Omicron likely spreads easier but causes less severe illness than other common COVID-19 variants, such as the Delta variant which had accounted for the vast majority of recent infections. Detected in Ohio on December 11th. At least in the investment world, the market appears to be taking an increasingly apathetic view of COVID case numbers and restrictions. Most recently, the market seemingly shrugged off new CDC guidance recommending consumers to avoid cruise vacations, regardless of their vaccination status.

In an article written by Bloomberg, Senator Joe Manchin (D – WV) says he only supports up to $1.75 trillion of the proposed “Build Back Better” plan. He has offered a number of criticisms for the proposed legislation, including that the estimated $2 trillion price tag undercounts the actual cost by considering “temporary” pricing on programs that the Democrats actually intend to make permanent. Sen. Manchin also wishes to see means testing (which would make tax credits unavailable to higher income earners) on electric vehicles and expanded child tax credit.

According FactSet, the Federal Reserve Open Markets Committee (FOMC) issued updated forward rate guidance in the form of its “dot plot”, and the consensus is now around three potential rate hikes in 2022. This is the view of 2/3 of the committee, following scaled back bond purchases over recent months ($120B in October ’21, $90B in December ’21, and $60B in January ’22). Many Fed watchers remain skeptical over the economy’s ability to tolerate three hikes and the necessity of doing so if inflation shows signs of rolling over in 2022.

Thanks Philip for that update. For our snowbird clients, let go to Ryan Richards with a weather update.

Thanks James, it’s colder than Florida, warmer than Antarctica, and just right for football. Back to you James.

We always want to talk to you…

Keep those New Year’s resolutions for as long as you can…

As always stay happy, safe, and healthy and hopefully we will see you very soon.

The views expressed by Huffman Mayer Paolo Wealth Management Group are his own and do not necessarily reflect the opinion of Well Fargo Advisors or its affiliates.

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