2Q 2022 Commentary: When Doves Cry

July 10, 20222Q 2022 Commentary: When Doves Cry

summary
  • The past six months have been the worst start to a year for a traditional “60/40” portfolio since 1932 when the U.S. economy was in the Great Depression.
  • Commodities and energy stocks served as rare bright spots in the first half of 2022, up 18% and 32%, respectively.
  • After being dovish for most of the past 13 years, the Federal Reserve is now struggling to change its reputation by becoming increasingly hawkish as it tries to tame inflation.
  • Unlike past hiking cycles, this one is occurring while the economy is slowing and a bear market has set in.
  • Although some opportunities are emerging, it may take more time to work through the effects of inflation and rate hikes.
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