The first half of the year was painful for investors. What’s the outlook for the remainder of the year?
- There’s no way around it: The first half of the year was painful. Nearly all asset classes suffered losses, and there were few places to hide. The bad news is the headwinds that drove markets lower are still in place: unusually high levels of inflation, slowing economic growth, rising interest rates, Fed policy uncertainty and fallout from Russia’s war on Ukraine. The good news is we see some potentially better times ahead, including more moderate inflation and (perhaps) less aggressive pace of monetary tightening. Overall, conditions will remain unsettled, but we’re cautiously optimistic that investors will begin to experience less pain and more gain.- Nuveen
- We continue to expect that inflation will remain elevated but falling, supported by healthy demand, a tight labor market, and supply constraints that will linger throughout the year. – Andrew Patterson, Vanguard, Senior Economist
- Fiscal drag, a higher dollar and higher interest rates should slow U.S. economic growth and inflation, although widespread pent-up demand still makes a soft landing more likely than near-term recession. – Dr. David Kelly, J.P. Morgan
As always, we continue to believe that one’s circumstances and risk profile should determine the appropriate mix of investments, and not media headlines. Please contact us if you ever have any questions or concerns about your accounts or any news you hear.
Past performance may not be indicative of future results. Therefore, no current or prospective client should assume that the future performance of any specific investment, asset class, or investment strategy (including the investments and/or investment strategies recommended by the adviser), will be profitable or equal to past performance levels. Information in this commentary is gleaned from third party sources, and while believed to be reliable, is not independently verified.