facebook twitter instagram linkedin google youtube vimeo tumblr yelp rss email podcast phone blog external search brokercheck brokercheck Play Pause
Weekly Market Update with Brian Ransom 11 February 2022 Thumbnail

Weekly Market Update with Brian Ransom 11 February 2022

Welcome to the weekly market update from Signature Wealth Management. I’m Brian Ransom, Research Director from Signature Wealth and here’s what happened in the market this week.

Following the 9.7% decline in value for the S&P 500, the index has established a temporary sideways trading pattern over the last week and a half. We did experience a significant selling event on Thursday, February 10th.  

Causing that sell off was a surprise announcement from the Bureau of Labor Statistics and their monthly inflation reading. Inflation continues to increase, ticking in the highest reading in 40 years despite the fact that supply chain issues have started to moderate. The announcement sparked a sell off in stocks and bonds, causing yields on the 10-year treasury to rise above 2%.

Included in that CPI reading is a significant spike in Flexible CPI, shown in brown here. While flexible prices are sometimes temporary, the magnitude of the spike is fairly alarming. More distressing, however, is the reading on Sticky CPI. Sticky CPI prices, shown in orange, are price increases that more permanent in nature and can include things like a bottle of coke, or a gallon of milk. Increases in Sticky CPI are usually indicative more long-term inflationary trends.

Just to caveat though, it’s important to put long term trends into perspective. For the last 10, 20, and 30 years, annual inflation has averaged 2.2%, 2.3%, and 2.4%, respectively. This includes the inflation seen over the last 6 months. All three rates are indicative of a healthy economy, long term, with ample production and minor price increases. In fact, since the first CPI readings in 1914, inflation has only averaged 3.1%, annually. This of course includes WW2, the boom era of the 1950’s, the inflationary periods in the 1970’s and 1980’s, and the inflation we are seeing today. 3.1% inflation, while slightly higher, is still indicative of a healthy economy. In fact, the time period with the highest level of inflation was the 1980’s when inflation was only 5.1% annually. While 5.1% is fairly high, it still puts everything into perspective. While the current inflation rate of 7.5% is high, long term this rate tends to mean-revert back into a healthy economy.

For more information on this topic or a variety of other topics including market updates, financial planning, and wealth management please like, subscribe, and follow. Don’t forget to check out our new podcast Up and to the Right! New episodes for Up and to the Right drop on a bi-weekly basis on all your favorite podcasting apps.


1.FactSet Research Systems. (n.d.). S&P 500 (Interactive Charts). Retrieved February 11, 2022, from FactSet Database.

2.Bureau of Labor Statistics. Graphic for Economic News Release: “12-month percentage change, Consumer Price Index, selected categories.” Updated February 10, 2022. Retrieved from https://www.bls.gov/charts/consumer-price-index/consumer-price-index-by-category-line-chart.htm

3.Federal Reserve Bank of Atlanta. Inflation Project: “Sticky-Price CPI.” Updated February 10, 2022. Retrieved from https://www.atlantafed.org/research/inflationproject/stickyprice

4.Bureau of Labor Statistics. Archived Consumer Price Index Supplemental Files “Historical CPI-U, January 2022 database.” Updated February 10, 2022. Retrieved from https://www.bls.gov/cpi/tables/supplemental-files/home.htm

Signature Wealth Management Group is registered as an investment adviser with the SEC. Signature Wealth only transacts business in states where it is properly registered, or is excluded or exempted from registration requirements. 


Information presented is believed to be factual and up-to-date, but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the author as of the date of publication and are subject to change. 


Information contained herein does not involve the rendering of personalized investment advice, but is limited to the dissemination of general information. 

The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general.

The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.


The Sticky Price Consumer Price Index (CPI) is calculated from a subset of goods and services included in the CPI that change price relatively infrequently.

Past performance does not guarantee future results. Consult your financial professional before making any investment decision.

Forward-looking statements are not guarantees, and they involve risks, uncertainties and assumptions. The use of words such as “will”, “may”, “could”, “should”, and “would”, as well as any other statement that necessarily depends on future events, are intended to identify forward-looking statements. 


Information is not an offer to buy or sell, or a solicitation of any offer to buy or sell the securities mentioned herein.

The S&P U.S. Style Indices measure the performance of U.S. equities fully or partially categorized as either growth or value stocks, as determined by Style Scores for each security. The Style series is weighted by float-adjusted market capitalization (FMC), and the Pure Style index series is weighted by Style Score subject to the rules described in Index Construction.

All information presented prior to an index’s Launch Date is hypothetical (back-tested), not actual performance. The Index returns shown do not represent the results of actual trading of investable assets/securities. S&P Dow Jones Indices LLC maintains the Index and calculates the Index levels and performance shown or discussed, but does not manage actual assets. Please refer to the methodology paper for the Index, available at www.spdji.com for more details about the index, including the manner in which it is rebalanced, the timing of such rebalancing, criteria for additions and deletions, as well as all index calculations.