The Q1 2022 GDP contraction was somewhat unexpected, as most surveyed economists had pointed to a 1% annualized growth. The most notable negative drivers were international trade and inventories. The former suffered from further disruptions to supply chains from the war in Ukraine and from China’s “zero COVID” policy – which pushed the government to impose strict lockdowns in Shanghai, an important hub for global goods trade. Inventories were soft as businesses rushed to fill warehouses in Q4 2021 for the holiday season, which limited their need for further stocking in Q1 2022.
Going forward, economic uncertainty is likely – in our view – to continue to negatively affect public market performance.
Diversify Your Portfolio Today
The Federal Reserve is attempting to fight inflation without sparking a recession, but long-end rates – and thus mortgage rates – have already increased substantially.
In addition, investors are still gauging what sorts of economic consequences China’s zero COVID policy entails for the global economy. For now, despite the renminbi’s weakness, supply-chain disruptions and skyrocketing prices of shipping containers are contributing to higher inflation globally.
On that note, industrialized countries are slowly adapting to the disruptions caused by their own sanctions against Russia. Higher commodity prices – namely food and energy – as well as access to rare earth materials are all crucial issues policymakers in the US, Canada, Europe, Japan and Australia will have to deal with in the near future.
Most importantly, however, consumer confidence remains robust in the United States, which, all things being equal, can be seen as a positive signal for the economy. While uncertainty may be fueling market volatility, alternative assets may allow investors to remain focused on the medium-term outlook. Check Yieldstreet’s offerings here.
1. Bloomberg data as of April 15, 2022
Sign up with Yieldstreet and be the first to know about our latest offerings, recent news, upcoming events, and more.Your email will never be shared and will only be used for Yieldstreet updates. Already a Yieldstreet member? You're already set up to be notified.
Gain access to unique offerings previously reserved for the ultra-wealthy
Customize your portfolio for income, growth, or a balance of both
Get started today and earn an average IRR of over 8%
The due diligence, risk management, and product education materials are thorough, excellent, and easy to use and understand.
Excellent and unique selections that I can't find elsewhere.
The platform delivers in a very concise manner. Easy to get a clear understanding at a glance from the web or mobile app.
Our weekly podcast providing ideas about how to make money work for you and bring you closer to your dreams.