2Q, 2022 Commentary: When Doves Cry

Summary

• The past six months have been the worst start to a year for a traditional “60/40” portfolio since 1932 when the U.S. economy was in the Great Depression.
• Commodities and energy stocks served as rare bright spots in the first half of 2022, up 18% and 32%, respectively.
• After being dovish for most of the past 13 years, the Federal Reserve is now struggling to change its reputation by becoming increasingly hawkish as it tries to tame inflation.
• Unlike past hiking cycles, this one is occurring while the economy is slowing and a bear market has set in.
• Although some opportunities are emerging, it may take more time to work through the effects of inflation and rate hikes.

Read and download the commentary here.