Market & Topical Perspectives

1Q22 Market Overview: The Fog of War

1Q22 Market Overview: The Fog of War

Facing threats from multiple directions—geopolitical strife, persistent inflation and shifting central bank policy among them—financial markets staggered out of the gates in 2022.

Key Takeaways

  • Key-Takeaway

    The supply-chain disruptions resulting from the war and the sanctions placed on Russia are far-reaching and have had rapid inflationary consequences in a world already struggling to contain price pressures. The longer the conflict persists, the greater the range of potential outcomes.

  • Key-Takeaway

    While China contemplates stimulus in the face of a slowing economy, Western policymakers are heading in the opposite direction. The Fed’s 25 basis point hike in March appears likely to be the first of many in 2022.

  • Key-Takeaway

    Inflation and the threat of slowing growth represent a risk to corporate earnings, and businesses that experienced rapid growth during the pandemic may be particularly vulnerable.

  • Key-Takeaway

    In an uncertain world, First Eagle’s Global Value team believes it’s important to view investments simultaneously for opportunity and for ballast.