Despite headwinds, the general economic backdrop remains favorable, according to Raymond James Chief Investment Officer Larry Adam.1 The recent volatility was mostly driven by geopolitical events that are unlikely to dissipate soon, a Fed rate increase, and higher prices. We had a late rally that softened some of the bigger losses from earlier in the month.

 

Russia invading Ukraine has lifted oil prices globally, explains Chief Economist Scott Brown. Inflation has remained elevated, reflecting higher energy prices and continuing supply and demand imbalances. Washington policymakers are focusing on domestic economic policy in hopes on limiting the potential consumer impact.

 

Overall, volatility linked to geopolitical risk is likely to persist over the next few months and adds complexity to the global economic outlook. Investors could view the choppiness of the market as a buying opportunity.

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Sources:

1https://www.raymondjames.com/commentary-and-insights/markets-investing/2022/04/01/weekly-investment-strategy