At the beginning of 2022 our concerns included:
• A new Covid variant causing supply-chain bottlenecks
• Rising interest rates intended to slow demand and lower inflationary pressures
• Lower earnings growth in 2023.
• China’s Chip & Tech War
• The pending invasion of the Ukraine
• The economic effect of post-Covid oil demand
• The Fed tapering its purchases of Government Bonds, aka quantitative tightening.
At the beginning of the 2nd Quarter of 2022 our concerns also included:
• Yield curve inversion, and an even more aggressive Fed
• An oil-shock/supply chain induced recession in 2023
• China’s acquiescence of Russia’s invasion and quiet funding of Russia’s war effort
• “One inch of NATO territory…” leading to an escalation of the conflict
• And the ever-present something we didn’t see coming.
At the end of the 2nd Quarter of 2022 our additional concerns now include:
• A prolonged energy crisis causing persistent inflationary pressure
• Lasting supply chain disruptions
• The growing threat of a Cold War with China
• The consumer spending spree ending abruptly with gas prices at all time highs.
Hope for recovery:
• Peace and oil correcting
• Supply-constraint induced inflation abating
• NATO with a stronger, more unified purpose with broad-based funding, aka the peace dividend
• Emerging tech finding a bottom.
Very careful security selection is required because this is not a “buy the dip” market. Please anticipate volatility in the coming weeks and months but don’t let this rare opportunity pass without a specific investment strategy.
Call now for an immediate portfolio analysis and investment proposal.