Welcome to the FIA News & Insights, a one-stop resource that includes insights from senior investment professionals on timely market events, their views on the economy and their respective markets. Find updates on the latest media information on Frost Investment Advisors, LLC and the most recent reprints, as well as, archival information for your reference.
Markets Hate Uncertainty
In the first half of 2022, markets have given back most of the gains made last year. Inflation started the ball rolling, rising well above recent history. This prompted the Fed to shift from an easy to tight monetary policy stance, increasing fears of an impending recession. Russia invaded Ukraine, exacerbating already troubled commodities markets. There is also growing evidence that the economy is decelerating. In this stagflationary environment, we’re focused on where interest rates go and whether the economy continues to produce real growth. The answer to these questions will drive the two metrics that most determine asset prices: earnings and valuations.
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