Capital Markets Outlook

Capital markets are walking a tightrope, balancing inflation, a hawkish Fed and predictions of a possible recession. As we enter the second half of 2022, recession or not, US and global growth will likely see a meaningful slowdown. In these volatile markets, it’s important to be active as you position your portfolio to participate and defend.

It’s been a long and winding road, and most investors are feeling a bit queasy. That begs the question: Are we there yet? Probably not. Below, in our midyear outlook, we address stubbornly high inflation, rising interest rates, the increased risk of recession and the repricing of credit—and provide strategies for steering through tough conditions.

While the conflict has created many uncertainties, the impact of persistent inflation will be the dominant influence for equity investors through 2022 and beyond.