Holding and waiting
"Be Fearful When Others Are Greedy and Greedy When Others Are Fearful.”
Warren Buffet
Summary
A bear market in equities has been accompanied by a decline in bond markets as interest rates have been increased. The combination of double-digit declines in both major asset classes hasn’t been seen in the past 40 years.
Whilst there are signs of a slowdown in the US economy, especially in the housing market, other cyclical indicators continue to remain positive, albeit at a slower pace of growth than seen post-pandemic.
The combination of falling equity prices and rising profits leave the US equity market on a much more attractive valuation than seen over recent years.
We believe that there are signs of a peak in inflation pressures (at least in the US), and if this leads to the Federal Reserve easing the pace of monetary policy tightening, this could lead to a more constructive investment backdrop.
All expressions of opinion reflect the judgment of Artorius at 22nd June 2022 and are subject to change, without notice. Information has been obtained from sources considered reliable, but we do not guarantee that the foregoing report is accurate or complete; we do not accept any liability for any errors or omissions, nor for any actions taken based on its content. The value of an investment and the income from it could go down as well as up. The return at the end of the investment period is not guaranteed and you may get back less than you originally invested. Past performance is not a reliable indicator of future results. Nothing in this document is intended to be, or should be construed as, regulated advice. Artorius provides this document in good faith and for information purposes only. Reliance should not be placed on the information contained within this document when taking individual investments or strategic decisions. Artorius Wealth Management Limited is authorised and regulated by the Financial Conduct Authority. Artorius is a trading name of Artorius Wealth Management Limited.