To our cherished clients, friends and colleagues we send our heartfelt wishes to you and your loved ones for good health, happiness and prosperity in 2023.
As for 2022, returns across all asset classes were the poorest in decades with virtually nowhere to hide. Prices in stocks, bonds, real estate, commodities, and digital currencies tumbled as a global bear market emerged. Among the culprits was inflation, which rose at its highest pace since the 1980’s as the “easy money” policies implemented by central bankers during the pandemic came home to roost. The knee-jerk reaction of these central bankers was to try and tame inflation by rapidly raising interest rates. In the U.S., the Federal Open Market Committee (a.k.a. the Fed) hiked rates seven consecutive times in 2022. This included four consecutive increases of 0.75% between its May to November meetings: this equates to a very aggressive seventeen-fold increase from a target range of 0.25% to 0.50% in March, to a target range of 4.25 to 4.50% announced at its December 15 meeting.
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By Charles Marleau CIM® and William Mitchell CIM®
By Charles Marleau CIM® and William Mitchell CIM®
