Please find the next blog in our monthly series that provides a snapshot of the markets and the state of the economy.
- Russia’s invasion of Ukraine rattled global financial markets, with most equity and bond indices down for the month
- Risk to supply of Russian and Ukrainian exports sent commodity prices higher, adding to short-term inflationary pressures
- The World economy remained robust, with strong US job growth and global Purchasing Managers Indices showing a rebound in activity post Omicron
- Most assets extend YTD losses, R2000 positive in Feb.
- Bonds outperforming YTD but still negative
Asset Class Valuations
- Equity valuations still attractive over bonds
- Equities, H.Y. bonds, R.E. provide an inflation hedge
Conflict Sends Commodities Higher
Key Factors We are Watching
- Geopolitical tensions
- Inflation / pace of consumer spending
- Financial conditions; Fed tapering
- Coronavirus variants
- Regulatory policy shifts (US and China in particular)
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