Well, it has been a heck of a first half of 2022 to say the least. Coming out of a Global Pandemic, the market volatility, inflation, supply chain issues, war in Ukraine (all Putin’s doing), and interest rate hikes, have thrown a wrench into the investment markets around the world so far this year. There are the beginning signs of light at the end of the tunnel, inflation may have peaked, supply chains are improving, North American Governments are making progress on battling these issues and we are hearing better news from our Fund Managers, the mid to long term indicators are beginning to shift.
Understanding it is summer and a nine-page read might be a push, I was so impressed with this second half outlook from Manulife Investment Strategists, I just had to add it in, there are pictures, so it is not so bad!
My big takeaway: On Page 2 as Brad Paisley said, “If you make the mistake of looking back too much, you aren’t focused enough on the road ahead of you.” As investors, it is easy to focus on the past, given the volatility across nearly all asset classes, but it’s important to keep the focus on the road ahead, as that’s what’ll likely lead us to our desired destination. On page 3, the article references the The Markit Purchasing Manager Indices (PMIs). PMIs tend to be a strong indicator of the overall health of the economy. A reading above 50 indicates that the manufacturing output is growing while a reading less than 50 signals that it is contracting. Said differently, green is good, yellow is neutral, and red is bad. Recent readings indicate that despite higher interest rates, higher inflation, and supply chain disruptions, the global economy remains resilient today. However, all leading measures, including the PMIs, indicate that the global economy will continue to slow through 2022 and into 2023. The pace of the slowdown could even increase if expectations of higher interest rates and runaway inflation unfold for the rest of the year.
Enjoy the read, and as always, do not hesitate to give us a call 1-866-241-1686
Be safe the rest of the summer, and I look forward to seeing you at the Canadian Outdoor Farm Show in September 13-15, we will be in the FCC tent so come on in and say hello!