The Investor Insight | October 2022

As we enter the final quarter of 2022, investors continue to battle the worst bear market since The Great Recession of 2008 as both the stock and bond markets probe new lows for the year. Several factors continue to plague the markets, none more pronounced than the Federal Reserve’s aggressive rate hikes as it fights the highest US inflation rates in 40 years. Globally, central banks around the world also have been on an unprecedented rate hike path to tame inflation. This has combined with the war in Ukraine to send global equity markets into a yearlong bear market, and even safe havens such as bonds have suffered declines of more than 20%. Little has been spared in this march lower. What we are facing currently is “supply side inflation”—high demand for goods and services, but limited supply, which generates inflation in proportion to the magnitude of the imbalance between the two. Thus, only increases in the supply of these goods and services can reduce inflation.

What’s Inside?
- Q3 Market Commentary
- Grinding Through a Bear Market