After years of mostly strong investment markets, spurred on by excessively easy money and ultra-low interest rates, markets around the world and all asset classes have deflated as central banks reverse course and start tightening. The extent of the excesses was such that far more will need to be done to correct them, but even so, we have experienced in the U.S. the most rapid pace of rate hikes certainly since 1980 and arguably ever, resulting in virtually every asset class and market falling. Most of the world’s central banks have relentlessly raised interest rates and withdrawn liquidity (some more enthusiastically than others). U.S. stocks, world stocks, bonds both long and short term, crypto, real estate: everything fell in a volatile year, most down by double digits. Gold and silver were unacknowledged champions, by holding their own. Though the rate of tightening might slow, the impact on the economy and markets is by no means over, as we discuss below. The year ahead will be a time to focus on preserving assets while looking opportunistically for mostly short-term trades.

Finish reading here: Portfolio Review 4Q2022