Investment Strategy: Q3. Discernment

At the beginning of 2022 our concerns included:

• A new Covid variant causing supply-chain bottlenecks

• Rising interest rates intended to slow demand and lower inflationary pressures

• Lower earnings growth in 2023.

• China’s Chip & Tech War

• The pending invasion of the Ukraine

• The economic effect of post-Covid oil demand

• The Fed tapering its purchases of Government Bonds, aka quantitative tightening.

At the beginning of the 2nd Quarter of 2022 our concerns also included:

• Yield curve inversion, and an even more aggressive Fed

• An oil-shock/supply chain induced recession in 2023

• China’s acquiescence of Russia’s invasion and quiet funding of Russia’s war effort

• “One inch of NATO territory…” leading to an escalation of the conflict

• And the ever-present something we didn’t see coming.

At the end of the 2nd Quarter of 2022 our additional concerns now include:

• A prolonged energy crisis causing persistent inflationary pressure

• Lasting supply chain disruptions

• The growing threat of a Cold War with China

• The consumer spending spree ending abruptly with gas prices at all time highs.

Hope for recovery:

• Peace and oil correcting

• Supply-constraint induced inflation abating

• NATO with a stronger, more unified purpose with broad-based funding, aka the peace dividend

• Emerging tech finding a bottom.

Very careful security selection is required because this is not a “buy the dip” market. Please anticipate volatility in the coming weeks and months but don’t let this rare opportunity pass without a specific investment strategy.

Call now for an immediate portfolio analysis and investment proposal.