Chief Investment Officer | Johnson Financial Group
As Chief Investment Officer, Brian Andrew leads Johnson Financial Group's investment strategy to provide consistent, actionable investment solutions for our clients.
Markets and Economy
2 minute read time
With hindsight we should be unsurprised we’d have a different sort of recovery given the circumstances surrounding the pandemic. The sharp decline in economic activity when parts of the economy were shut down was followed by a tidal wave of demand as the economy reopened. Supply chains were unprepared for the surge in demand bolstered by unprecedented monetary and fiscal policy support. Add a war in a region that supplies food and energy to much of the world and you have a recipe for high inflation.
The consequences of high inflation led to high volatility in financial markets as investors reprice assets for the new environment. Bond prices have declined at one of the fastest rates in history, because interest rates are rising from such a low level. Interest rates are moving higher after reaching historic low levels during the pandemic. Stock prices are adjusting from a Goldilocks period a year ago with ample demand and low interest rates to a period of high uncertainty surrounding earnings given slowing economic growth and high inflation.
While volatility will be with us for the foreseeable future, we are confident the economy, companies and markets will adjust to the new environment as they have in the past.
View Brian Andrew, Jason Herried, Ron Alberts and Jonathan Henshue's interview on the economy, our outlook on the equity and fixed income markets and how alternative investments can play a role during times like these.
Download a copy of the full report providing our outlook on the economy, markets and how we’re currently positioning portfolios.
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