May Edition of Portfolio Construction – Declines All Around, but Opportunities to be Had
So far, 2022 has presented a difficult market to invest in, with significant declines in both bonds and equities. The biggest concerns have been central banks beginning to raise interest rates and risk of recession, although there are no signs that we have entered a recessionary period yet. The two events are actually correlated, meaning higher rates will typically raise the likelihood of recession. We believe central banks have a very short window to raise rates as borrowers’ ability to pay higher rates is low.
Download the full report below.