Central banks have turned hawkish en masse, going from extraordinary monetary easing to record tightening relatively fast. Investors need patience and perseverance.
Will doomers get it right for a change? Is everything about to head down the drain? It does appear that the developments over the past month are pointing to that possibility.
Central banks will keep raising rates until it’s clear that core inflation is coming down. We don’t see a soft landing where inflation returns to target quickly without crushing activity.
After eight months of economic uncertainty, we are entering the time of year that will determine how the race for investment performance will cross the finish line on December 31, 2022