The Three I’s for 2022

by Steve Schott, Financial Advisor, Schott Financial Management

As a financial advisor, clients always ask me about what’s in store for the years ahead when it comes to investing. While I don’t pretend to be a fortune-teller, I do see certain market conditions on the horizon that will influence your money in 2022. I call these conditions The Three I’s: 


Sticker shock at the gas station or grocery store? Prices are increasing. Emerging from the pandemic, with pent-up demand and large amounts of cash pushed into our economic system, investors need to make sure their investments keep pace. Inflation can dull one’s purchasing power. Maintaining your current standard of living means making adjustments to your portfolio. Meeting with a financial advisor can help you stay on track. 

Increase in taxes:

Taxes will go up to pay for Covid-related stimulus and infrastructure. My best estimate is that the corporate tax rate will increase from 20% to 28%; the top tax bracket will rise from 37% to 39.6%. Unknown changes are possible in capital gains, estate tax, and step-up provisions. Investors should monitor potential changes. 

Interest rates:

The Federal Reserve asserts that interest rates will remain virtually at zero for 2021. I think we will see a similar policy in 2022; however, rates will slowly climb in anticipation of increased rates in 2023. For investors, there will be opportunities to invest in security products that produce better yields. 

The Three I’s will create opportunities. As of right now, there is a shift in the markets from growth securities to value, which makes sense. Most growth stocks are in technology and communications: think Zoom and Amazon, two companies who benefited tremendously from the Work-From-Home migration. Growth stocks also led us out of a market correction last April, when the pandemic began. 

For the remainder of 2021, value stocks lead the market. According to Investopedia, a value stock “refers to shares of a company that appears to trade at a lower price relative to its fundamentals, such as dividends, earnings, or sales, making it appealing to value investors.” Value stocks pay a dividend, and profits increase as interest rates rise. 

Remember the Three I’s when it comes to your investments. Look for opportunities in the growth to value shift and meet with your financial professional regularly. At Schott Financial Management, we offer free, no-obligation consultations. You can call our office, 928-776-1031 or visit

Securities offered through Registered Representatives of Cambridge Investment Research, Inc., a broker-dealer, member FINRA/SIPC. Advisory services offered through Cambridge, a Registered Investment Adviser. Schott Financial Management and Cambridge are not affiliated.

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