BakerAvenue Prudence Indicator Says...
Long-term: Positive | Short-term: Oversold
Getting Comfortable With Being Uncomfortable
From monetary and fiscal policy headwinds to Covid and supply chain tailwinds, we continue to see 2022 as a transformational year. The capital markets are adjusting to a more normalized backdrop, and volatility is the uncomfortable companion going along for the ride. Encouragingly, the adjustments (e.g., interest rates, growth rates, valuations, etc.) are happening against a backdrop of strong economic growth and record corporate profitability. Investors are skeptical, but in time should get comfortable with the new backdrop.