4Q, 2021 Commentary: Candyland

Summary

  • Equity markets delivered positive returns in the final quarter while fixed income returns
    were flat.
  • Due to an improving labor market and stubbornly high inflation levels, policymakers are
    set to reduce the unprecedented fiscal stimulus and unsustainable levels of monetary
    policy accommodation.
  • Inflation became officially politicized when Democratic Senator Joe Manchin of West
    Virginia cited it as the main reason for not supporting the Build Back Better fiscal bill.
  • The tightening of monetary policy and reduced fiscal stimulus in 2022 will create more
    volatility across markets and the economy.

Read and download the commentary here.

 

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