- A strict COVID lockdown in China and the continued conflict between Russia and Ukraine are deepening supply chain issues and contributing to rising prices.
- Inflation concerns continue, with an annual CPI increase of 8.3% reported in April.
- GDP turned negative in the first quarter of 2022.
Select economic and market data
Statistic (monthly unless noted)
|U.S. GDP (quarterly)||-1.4%||6.9%|
|Consumer Price Index||1.2%||0.8%|
|2-Year Treasury Yield||2.71%||2.33%|
|10-Year Treasury Yield||2.93%||2.34%|
- In the worst month since March 2020 and the beginning of COVID-related lockdowns, equity markets deteriorated in April, with all indices shown at left adding to their year-to-date decline.
- The Dow Jones Industrial Average and international equities led April performance with the least severe losses; meanwhile, the NASDAQ trails for both April and YTD.
- Responding to inflation, rates rose across maturities, leading to negative returns for all but the shortest investments.
- The Fed raised its Fed Funds rate by 50 basis points, with more increases likely.
- Corporate bonds followed equities lower and posted the largest negative returns among bond sectors.
- Neutrally positioned on equities, while slightly favoring international over large cap domestic for long-term return potential.
- Finding value in select domestic equities while trimming outsized “growth” exposure.
- Maintaining shorter-duration fixed income structure as a low but rising interest rate environment is likely to persist.
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