MARKETS IN A NUTSHELL - JUNE 2022
It is worthwhile at the half-year point to put context to the events of 2022, with global markets unequivocally into bear market territory. Markets took fright early in the year at higher and more persistent inflation and as central banks began to withdraw stimulus. As is typical of liquidity driven market shocks, most asset classes sold off and there was little diversification benefit available from the typical 60/40 investment strategy. Commodities were the outlier, still benefiting from 2021’s global supply backlogs. They were given their own booster shot by Russia’s invasion of Ukraine and the subsequent squeeze in energy and agricultural soft commodities.
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