NEIRG invites you to review our quarterly market environment report. This report updated through Q3 2022. Global markets continued their downtrend in the third quarter. Fed Chair Powell’s speech at Jackson Hole in August dashed hopes that the Fed would consider pausing its tightening cycle. After recovering in July, both equity and bond markets broke through June lows.

Inflation remains sticky even as the economy slows. The best recipe for balanced portfolios may be a mild inflation that could be supportive of both stocks and bonds. In this scenario, the prospect of a softer Fed could more than offset the negative impact of weak earnings.