Economy & Markets
Knowledge of the economy and markets is essential to informed investing. In broad terms, an economy comprises the wealth and resources of a country or region, especially in terms of the production and consumption of goods and services. Financial markets refer broadly to any marketplace where the trading of securities occurs, including the stocks, bonds, currencies, among others. These articles could help broaden your understanding.
We believe we can add value by adjusting portfolio weights in response to changing market conditions and in anticipation of changing fundamentals. History demonstrates that risk assets move through repeated boom and bust cycles. While the economic cycle influences these cycles, they do not necessarily overlap with the risk asset cycle.
One thing we feel strongly about is the Fed's commitment to get inflation down to their 2% target. We also note that the Fed is setting policy using data out of the rearview mirror. Given the lagged effects of monetary policy, this approach increases the odds for a Fed overshoot. This is at the core of our more cautious stance in asset allocation positioning.
This is an update to the latest information presented in the Quarterly Themes Insights from February 28, 2022. We evaluate historical data and statistical relationships to identify drivers or signals as of April 15, 2022.
This is an update to the latest information presented in the Quarterly Themes Investment Update from February 28, 2022. We evaluate historical data and statistical relationships to identify drivers or signals as of April 15, 2022.
With the tide of liquidity starting to move back out we are taking off the risk-on posture we advocated at the start of 2021 and think a shift back toward strategic weights may be prudent. We believe opportunities will develop over the course of 2022, which will lead to advantageous positioning changes.
We believe that the monetary and fiscal spigots have begun to close, moving us to a new phase in the markets – one that may feel more familiar with fundamentals driving returns, says Richard “Crit” Thomas, Touchstone’s global market strategist.
How might a change in the White House impact investors? Prevailing conditions, rather than party affiliation and campaign platforms, may offer greater insight into what a Biden presidency may portend for the markets.
Can the U.S. inflate its way out of its debt problem when much of its growing deficit is in fact tied to inflation? Higher debt levels seem here to stay. What are the implications for future administrations and their ability to legislate?
We believe there is low probability of a protracted trade war between the U.S. and China but think there will likely be intense downward pressure on equities – more so in emerging countries than in the U.S. – if this occurs.
Economy & Markets
Ready to Continue?
You have clicked a link to access information on an external website, so you will be leaving westernsouthern.com.
When you select a link to an external website, you are subject to the privacy, copyright, security, and information quality policies of that website. The Western & Southern Financial Group:
DOES NOT control or guarantee the accuracy, legality, relevance, timeliness, or completeness of information contained on a linked website;
DOES NOT endorse linked websites, the views they express, or the products/services they offer;
CANNOT authorize the use of copyrighted materials contained in linked websites;
IS NOT responsible for transmissions users receive from linked websites;
DOES NOT guarantee that outside websites comply with the accessibility requirements of Americans with Disabilities Act.