Global Matters | Monthly
Global Market Review & Outlook
The war in Ukraine, and widespread evidence of Russia’s depravity as its advance falters, continues to cast a dark shadow over the world. With Russia’s invasion now into its third month, and both sides increasingly intransigent with no signs of a negotiated end in sight, the probability of a long, attritional war is rising. The longer the war drags on, the greater the risk of longer lasting economic damage, transmitted primarily through global energy and agricultural commodity prices. Yet in April it was deepening worries about economic imbalances, which had been developing long before the invasion, that drove financial markets – ultra-loose monetary and fiscal stimulus adding fuel to the fire of post-pandemic release of pent-up demand, triggering excess demand in supply-constrained markets, in turn leading to high and persistent inflation.
VAM Investment Update: Stagflation
- May 2022
MARKET COMMENTARY
- MAY 2022
Global stock markets came back under pressure in April as concerns surrounding monetary policy tightening soured investor sentiment. Inflation data hit new cycle highs in the US, UK and Europe, pushing interest rates up further on expectations central banks will remain vigilant in their quest to curb rising prices.
Managing Market Volatility
Helping you make informed investing decisions.
Whether the market is volatile or calm, it’s always better to have your money invested and working for you. While investing is risky, and financial markets do go through negative periods, downturns are relatively short-lived and invariably followed by a significant rally that has more than made up for any previous losses.