Another blockbuster year for the stock market is in the bag. That makes for threes consecutive years of double digit returns — a rare streak in the history of the S&P 500.

Going forward, I expect things to become more difficult, as we are more likely to see the long-term drawdown average (-14% in any given year) materialize at some point in 2022 than a repeat of an extremely calm year.

Higher stock market volatility with a correction of 10%-20% would be entirely normal — this is not a prediction, but would merely be a return to average conditions.

The main battleground is the fight of extraordinarily strong momentum against a reduction of return-driving liquidity.