December closed out a tough year for markets. The U.S. indices showed single-digit declines for the month, capping off drops for the year of about 7 percent for the Dow, more than 18 percent for the S&P 500, and 32 percent for the Nasdaq. The primary drivers were rising inflation and Fed rate increases. Still, job growth remained healthy, and consumer spending and business investment rose.

So, what are the biggest risks as we enter the new year? Listen in.