Cetera Investment Management has released its 2022 Second Quarter Outlook. In this outlook, they discuss growing inflationary pressures escalated by the war in Ukraine. The Fed is proceeding cautiously, but if inflation doesn’t subside, it may be forced to act at the expense of economic growth and the labor market. They dissect this topic and what it means for both stocks and bonds.

In this commentary, we discuss the recent Russian invasion of Ukraine and the ramifications on financial markets. In traditional geopolitical events, commodities tend to fall on economic growth concerns. This conflict has triggered the opposite as Russia is a major oil and agriculture producer and potential sanctions could impact exports. Given this uncertainty and potential financial shock, the Fed (and other central banks) may rachet down some of their hawkishness. Diversification remains a key strategy to navigate market uncertainty.

Last week we had a client seminar with Franklin Templeton Investments share their thoughts on what it takes for the U.S. Economy to be in a recession.  Follow the link below to their page to see their focus on where we stand and what to watch for in the coming months.

In their latest commentary, the Cetera Investment Management Team discusses the large swings in stock markets last week as investors grabble with the next phase of the economic recovery.  We are entering an economic environment with a less accommodative Fed and higher rates, which will cause repricing of assets and expectations. We discuss both tailwinds and headwinds and what this means going forward.