Dear investor,
Three months ago, I wrote that the prevailing investor pessimism seemed unjustified as per our analysis of the primary factors behind the uncertainties revealed many underlying opportunities.
As a reminder, these factors were – and still are – the following:
Central banks’ fight against inflation. The effects of Russia’s invasion on food and energy prices made it imperative for central banks to introduce highly contractionary monetary policies, just after the pandemic created an unprecedented increase in global liquidity. Now that fiscal stimulus is winding down in the US, an economic slowdown is looking more probable. How deep will this slowdown need to be in order to ease the tight US job market and significantly reduce inflation expectations? Read more>