Our Latest Thinking.
You can find our thoughts on world events, trends and happenings and its pertinent impact on the economy and financial markets here.
We will share our perspective on the past, opinions on the future, and any potential plans to action against our insights.
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?
Roughly two years since the initial rumours about a new contagious disease began popping up in our newsfeeds, markets remain susceptible to the whims of a virus. On the COVID roundabout, we’ve approached the familiar turnoffs for restrictions, lockdowns, vaccinations, and most regretably, illness. However, while we’re reminded of Bill Murray’s exhaustion after reliving the same scenario again and again in the film Groundhog Day, there have been substantive changes in the markets and economy this go-around.
The world largely seems to be moving towards accepting life with COVID, understanding that full eradication of the virus seems unlikely in the near future. The vast majority have come to understand both the risks of the virus(es) and the benefits of vaccinations. In addition, people have adapted to the ongoing measures intended to curb rates of infection, which is likely to be the norm going forward.
How does this tie into the markets, and James Bond?
Lee Turner & Associates entered its 31st year in June and while we paused to celebrate the anniversary, markets continued where they left off last quarter. We noted at the time how investors were obsessing over several binaries—re-openings versus shutdowns, variants versus vaccines, inflation versus unemployment, cyclical versus growth, and finally, young traders versus old investors. These tensions came no closer to being decided and in many cases, intensified. While the securities we invest in continued to climb alongside the market during the quarter, we are keenly aware that volatility tends to accompany such rises.
The big “new” thing in investing in the last few years and which shot to prominence during COVID—is “sustainable” or “ESG” investing (environmental, social, and governance investing). The premise is straightforward: companies have avoided shouldering the costs of their negative impacts on society, on the environment, and on various stakeholders and now the bill is coming due. In many ways, the trend is not new at all … So, what does all of this mean for us and you?
A Special Thank You!
Lee, Turner & Associates Inc. celebrated its 30th anniversary this past June.
When we reflected on these years passed, it is you – our clients that came to mind first and foremost. You put us where we are today. You gave us your trust and confidence, unwavering support, and warm friendship. We are truly grateful!
Thank you very, very much. We look forward to being of service to you and your families for many more years to come.