A Function of Duration

A Function of Duration

By Julien B. Booth

July 6, 2022

I hope this note finds you and your families doing well.

For the past several days I have been reflecting on a clever way to frame-up the financial market conditions.  To my chagrin, there is just not a great way to sum up the worst first half period since the 1970’s.

There has been nowhere to hide.

The truth is the only way, especially after the past several years of Post-Truth story telling.  If there is a bright spot, Crypto currency losses and bankruptcies ($2+ Trillion) are somewhat removed from the traditional banking system – DeFi (decentralized finance) as it is called.  Additionally, the 2nd tech stock bubble is also unwinding…actual revenue and profits are becoming sexy again (note sarcasm).

We are fortunate to not transact in these levels of speculation (crypto, profitless cos.).  Interconnected markets however spread the pain.

Net, net we have a growth slowdown, elevated levels of inflation, and a Federal Reserve hiking rates… not a good recipe.

Our last note best represents our current thoughts most succinctly.

Happy Father’s Day & 2 POV’s

For investors in quality underlying companies this period will cure itself – with time.

Thank you for your interest.

Julien B. Booth

Chief Investment Officer – Fixed Income & Real Assets

BRC Wealth Management