By Sumit Handa, Managing Director, Partner, and Co-Head of the Investment Committee for Pennington Partners
Crypto Winter. War in Ukraine. A stock market drop: What’s an investor to do?
When we look at the drop in stock market values, we see this as the result of two factors: Covid lockdown policies that were drawn out far longer than they should have been, and monetary policies that have so far been ineffective at containing inflation. Even though, as of this writing, China has eased lockdowns in Shanghai, the reduction in output will still be felt. Also, we have our doubts as to whether rising interest rates will curtail inflation.
While we unequivocally do not support the Russian invasion of Ukraine, it is critical to fully understand the negative economic consequences of the sanctions that have been imposed as a result. We are seeing economies make decisions right before our eyes that will change how they operate for decades to come. Whether you support a return to deglobalization for example or not, what we have done to “punish” Russia is having real effects on our economy and way …
Full story available on Benzinga.com