Brave New World
As noted in our 2021 Investment Review, your portfolio had experienced a strong 4Q finish, a robust 2021 overall, a sharp advance from March 2020’s lows and significant gains over the past 3-, 5-, and 10-year periods. We wrote that “these well-above average trends reflected a recovering economy, a prolonged economic expansion, low inflation, a drop in interest rates, and accommodative monetary policies.”
Today, we face a very different picture. Markets and your portfolio are correcting. Inflation is running hot. The Fed is now tightening. Bond yields have backed up markedly. And we are now at the seven-week mark of Russia’s brutal invasion of Ukraine. To steal a phrase from Aldous Huxley, we really do believe that we have entered a brave new world.
To read more, download the full First Quarter 2022 Investment Perspective.