Are we in a mild recession now? Maybe, though it’s hard to tell just yet. Whichever direction markets may move over the coming few quarters, the unpredictable nature of the post-pandemic economy is likely to become more predictable. And that’s a good thing from an investment point of view.
What impact does the recent downgrade of U.S. national debt have on the American economy and individual portfolios? That question is on the minds of many people these days.
Some analysts are calling this year’s strong start a new bull market, believing that a soft landing – not a recession – is in the cards this year or next. While we think a severe recession is unlikely, we know there’s more uncertainty than usual and would like to reiterate the importance of diversification.
Inflation has central banks between a rock and a hard place: increase rates just enough to moderate inflation – or tip us into a recession. The answer will be revealed at some point, but in the meantime, opportunity lies in the weeds.
Our investment team looks at the state of the markets and what a potential recession could look like against the backdrop of the current inflationary environment.