April 2022 – Investment Quarterly
We’ve come to know the tale of David & Goliath as a situation where an underdog, David, takes on an opponent that is perceived to be in a much more advantageous position, Goliath. In the first quarter this year, the world saw this narrative unfold across several areas of life. Economically, we saw consumers battle Goliath increases in prices for goods and services.
Inflation, as we had anticipated, is not so transitory. It will drive consistent interest rate hikes for the remainder of the year. But with interest rates going up, do we foresee this tightening of monetary policy to tighten economic growth?