May 2022 Market Update
We continue to see significant volatility in both equity and fixed income markets. Recent talking points haven’t changed much, with the significant shift in global monetary policy the primary driver of negative sentiment. The biggest reason for this policy shift is, of course, inflation. Some of the key points for May’s update are:
- Consumer prices dropped to 8.3% in April, which may end up confirming that inflation did, in fact, peak in March.
- Energy prices declined slightly in April, but it wasn’t enough to significantly reduce the headline inflation number.
- Our economic dashboard continues to reflect a strong labor market, along with risk indicators that have yet to signal concern.
- While we expect continued volatility in the markets, we are beginning to see some opportunities emerge.
We hope you find this video educational and informative. If you have any questions, please reach out to your advisor. As always, thank you for putting your trust in the Merit team.
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