Time to Read: 3 Minutes
In our Mid-Year Update webinar, BWM Financial President Jeff Brown discusses the headline concerns of inflation and central bank policy. We review how both affected market performance in the first half of the year and what it could mean for the rest of 2022. Here are the key takeaways:
- The first 6 months of 2022 have been the worst start to year for a 60/40 portfolio since 1932, being driven by global inflation concerns and central bank tightening.
- Inflation signals are mixed and likely to remain elevated for some time.
- Inflation expectations are moderating due to tough talk from the Fed.
- Fed hike expectations have dropped dramatically in recent weeks.
- A recession is always possible, but US economy still showing growth with solid employment.
- Worst could be over if no recession materializes in 2022.
- BWM’s core portfolios are neutral to slightly underweight equities and bonds, with excess cash awaiting the opportunity to deploy.
We continue to monitor our indicators and are prepared to make tactical changes as the economic landscape shifts. Please contact BWM Financial if you would like to discuss your specific situation in more detail.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. Stratos Wealth Partners and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.