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The S&P 500 is likely to end 2022 lower than when it opened as returns are likely to be limited, according to an Invesco report.
Historical data indicates that there have only been nine occasions since 1915 when total returns of the S&P 500 exceeded 15% for three years in a row, and it has already done so in the last three years.
Given the Shiller PE climbing above 38, history suggests that the returns of the index will likely be limited in the coming decade, with the market rarely being so expensive.
Short-term volatility is also expected given the hawkish stance of the Federal Reserve, indicating of as much as three rate hikes for the year, along with the shrinkage of balance sheets.
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