Year-To-Date 3rd Quarter 2022 Market Review
So far in 2022, stubbornly high inflation, steep interest-rate hikes, recessionary worries, conflict in Europe, and the soaring US Dollar triggered severe asset-price volatility. The headwinds appeared to wane in July and August. However, markets were under pressure in late September as central banks continued tightening policy as inflation remained high and weaker than expected economic growth. But investors remained worried about high inflation, slowing economic growth and the potential cause of recession if for Fed raised interest rates too aggressively an aggressive Fed to cause a recession. The only source of comfort is that investor sentiment is very negative, and valuations provide the margin of safety, providing some reassurance that markets have already accounted for the bad news.