From what I am reading the big question is will global economic growth be sufficient to withstand the pending pivot in global monetary policy. Asset prices have risen over the last couple of years due, in part, to global monetary policy. As monetary policy tightens around the world will the economic growth be sufficient to continue to support the value of these assets. I leave the answer to these questions to those far more educated in these matters than I. What this does indicate to me is that we would be foolish to think we can figure all of this out ourselves. If ever there was a time to rely on the experts this is it. We continue to stand by the sentiment that markets in general go up over time. With that known fact, an investment strategy that includes a broad diversified portfolio of ETFs is the most appropriate strategy both now and in times of more certainty.
“Despite the acceleration of the tapering coming from ‘The Fed’, we’re still only looking at 4 rate hikes and just over 1% in 2022. I don’t see that having too strong an impact on the borrowing abilities of corporations and individuals. Inflation will be something we’ll have to watch, but I think 2022’s theme will be volatility and how we can manage it. Investors should look to focus on diversifying their investments and/or strategies to include more commodities, alternatives and to be strategic about stock selection.” – Som Seif, Purpose Investments CEO
Family Wealth Advisory Team