ARTICLE

Navigating Inflation’s Effect on Stocks and Bonds

by: Brad Swinsburg, Partner + Chief Investment Officer

June 29, 2022

Inflation continues to exert pressure on financial markets, leading to recent negative returns on stocks and bonds. In this video, Brad Swinsburg addresses frequently asked questions and concerns about these declines while providing some perspective on why this is happening. Take a look at the next few videos to hear our latest insights on market activity for the second quarter of 2022.

Opportunities Amidst the Mayhem

Sticky inflation and slowing economic growth have been a rough one-two punch for markets in 2022. The simultaneous weakness in both stocks and bonds has created a frustrating period for investors, to say the least. In this video, we look at the difficulties investors have faced this year and compare it to market activity dating back to 1976. In spite of the difficult markets, opportunities like tax-loss harvesting or repositioning portfolios exist and are something we’re working closely with our clients on. Watch this video to learn more.

Recent Returns in Bonds

The long bull market in bonds is clearly over and investors are now faced with confronting a new reality.  Despite recent returns and pervasive negativity toward the asset class, there are reasons to believe that the worst of the bond selloff may be behind us. In this video, we discuss three possible paths or scenarios for bonds over the remainder of the year.

Higher Inflation and Stock Prices

The idea that inflation will be transitory has long since been disproven and now investors have moved on to worrying about the future path of the economy, specifically the probability of a recession. In this video, we discuss stocks and our current thoughts on the market and what lies ahead.

As always, each advisor at Smith and Howard Wealth Management is available and ready to answer your questions on these or other topics related to investments and financial planning. Please call us at 404-874-6244 or email us here.

Unless stated otherwise, any estimates or projections (including performance and risk) given in this presentation are intended to be forward-looking statements. Such estimates are subject to actual known and unknown risks, uncertainties, and other factors that could cause actual results to differ materially from those projected. The securities described within this presentation do not represent all of the securities purchased, sold or recommended for client accounts. The reader should not assume that an investment in such securities was or will be profitable. Past performance does not indicate future results.