Future Returns Pulled to the Present is Meta

To put Facebook, now Meta's recent stock price decline in perspective, it is like losing an entire Johnson and Johnson of market value. We discuss volatility in high-growth stocks and what it can mean when forward returns are pulled into the present.

In other news, fourth-quarter corporate earnings results are coming in relatively strong. And in jobs, we saw higher than expected employment increases in the private sector, led by leisure and hospitality. Professional and business services, which happens to be the economy's highest wage sector, also saw strong growth in January.

These positive signals reconfirm our view that the Federal Reserve will remain on track with its plan to increase short-term interest rates in the first part of 2022.

Photo by Steve Johnson on Unsplash
V22040865