Russia's invasion of Ukraine has heightened market risk following an already volatile start to the year in markets.
Sanctions have severely limited Russia's ability to defend the ruble; more sanctions on Russian banks and debt are likely.
We anticipate continued Treasury yield curve flattening.
Inflationary pressures likely to persist due to the conflict in Ukraine, complicating the task of central banks trying to engineer a soft landing.
Fed hiking cycles tend not to derail markets, but it is important to consider the context before making investment decisions.
Higher rates and more volatility demand a flexible approach.
Higher interest rates pose near-term challenges for stocks.
Although concerns over Fed hikes might be overblown, there are a number of other reasons to expect further market volatility.
Near-term volatility does not diminish long-term opportunities driven by the transition to the cloud and the rise of e-commerce and online advertising.
Omicron is significant, but it’s likely to move on swiftly without a large drag on current positive drivers of markets.
Flexibility and a multi-sector approach, in our view, are particularly important in navigating today’s dynamic market.
The year 2022 will start with a whimper as the omicron variant weighs on the global economy but will end with a bang as growth rebounds.
While macroeconomic events may have dominated financial market narratives during the pandemic, fundamentals still matter.
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