The Latest Market Insights 2022-Q3
With the depths of the pandemic and COVID lockdowns behind us, the consequences continue to reverberate through the economy and capital markets. The infusion of trillions of dollars into the economy by the federal government and Federal Reserve over the past few years to help employees and businesses weather the economic effects of the pandemic has led to unprecedented inflation permeating every aspect of our lives. The price for food, rent, gas and other everyday purchases has increased by double digits, with uncertainty when it might subside. To combat inflation, the Federal Reserve is aggressively increasing short-term interest rates and has started to reduce their bloated balance sheet. In this environment, the capital markets have remained extremely volatile. Both stocks and bonds have posted negative returns while the economy is showing signs of slowing down. Although unnerving, there are hopeful signs that inflation has peaked and its impact on the economy will begin to subside. Still, it remains unclear whether the Federal Reserve’s fight to halt inflation will eventually tip the economy into a recession.
Watch this video to learn more about the economy and our strategies and insights during Q1 2019.