The first quarter 2022 market downturn squeezed equity and fixed-income asset classes alike. As investors, we've all grown accustomed to pull-backs in stocks, but not like the simultaneous stock and bond drawdowns of the magnitude we just witnessed.
The task of being a good steward is always top of mind for me. It’s an honor to have the opportunity to help our clients make good decisions with their money.
There has been a fair amount of talk about a possible recession coming to us in the near future. I want to discuss what that means and also give a bit of historical context so that we understand the recession when a recession actually shows up.
With more than 400 million records sold, 15 Grammys won, and instantly recognizable by billions of fans worldwide, Michael Jackson was a pop culture icon.
After a historically calm 2021, volatility returned in the first quarter of 2022, as inflation surged to 40-year highs, the Federal Reserve promised to raise interest rates faster than previously thought, and Russia surprised the world with a full-scale military invasion of Ukraine, marking the first major military conflict in Europe in decades.
Markets have shown greater signs of stability since the Fed's rate hike announcement two weeks ago. Not only was it widely expected, but many investors believe the Fed should tighten even further.
The world is a chaotic place right now. There's always a degree of chaos of course, but there seems to be an abundance of it currently - war, sky-high inflation, crime, market turbulence...and the list goes on.
While the humanitarian impact of Russia's invasion of Ukraine is the top concern, investors also continue to face a challenging market environment as the conflict intensifies.
Pain in the Bond Market