NEWSLETTERS

The first-half of 2022 proved to be a challenging time for global financial markets. High inflation, rising interest rates, the ongoing conflict in Ukraine and persistent supply-chain challenges have acted as a myriad of headwinds for financial markets. Notable indexes for both risky assets (stocks) and less-risky assets (bonds) have suffered double-digit losses since the start of the year. On a relative basis, client portfolios have performed well and have continued to protect capital during the market weakness.

The events of February 24, 2022 shocked the world as Russia launched a large-scale military offensive in Ukraine. The U.S. and its allies responded with sweeping sanctions and boycotts to hamper the Russian economy. They have stopped short of engaging in a direct conflict with Russia at the risk of further escalation. While a resolution may be on the horizon, the impacts of the conflict have been wide-ranging across industries and felt globally. Humanitarian crises are arising in neighbouring countries as almost 4 million refugees have fled Ukraine while commodity shortages from export restrictions have ripped through global supply chains.

WPC has named our very own Skyelar Siwak as one of the top young professionals in Canada’s Wealth Management Industry for the 2021 year. As one of their featured winners, Skyelar was able to share with WPC what has contributed to her growing success in the industry since joining the Hemisphere Capital Management team over six years ago.

From food to haircuts, prices seem to be rising everywhere. A key concern for investors is whether this pandemic-induced inflation will be transitory, as economic growth reverts to pre-pandemic levels, or will persist over the longer term.

It has now been a year since the beginning of the COVID-19 pandemic. After strong returns in the first quarter of 2021, client portfolio valuations are now higher than pre-pandemic levels. Although financial assets have nicely recovered, everyday life remains constrained as we patiently await a return to “normalcy”.

In the quickest meltdown in financial history, global equities experienced their worst quarterly performance since the 2008-09 financial crisis. While the Canadian stock market declined almost 24%, U.S. stock markets dropped 16% in Canadian dollar terms.