Geopolitical risks along with the recalibration of monetary policy have caused historically one of the worst quarters for investors. The continuing rise in commodity prices may be reflected in the acceleration of global inflation in the next quarters. Find out more in our report.
Q1 2022 Highlights:
- Global stock markets experienced their second worst start of the year in the past 123 years. The first quarter of 2022 began with a sharp decline in stock markets. In its first three weeks, the S&P 500 Index decreased by -11.45%, Nasdaq Index -16%, Dow Jones Index -8.77%.
- In Q1 2022, US inflation reached the highest level since 1981. The most significant growing component of the CPI was energy price with a year-over-year growth of 32% by the end of Q1 2022. The Dollar Index increased, indicating the strength of the US dollar and the US economy. Core CPI of +6.5% reached the 40-year maximum.
- The unemployment rate in the US is at 3.6% (pre-pandemic unemployment rate was 3.5%, historical average from 1948-2022 is 5.75%). The low level of unemployment implies the economic growth. The low unemployment rate (3,6%) combined with inflation (8,5%) indicates that the economy is overheating, which is typical of the peak of the economic cycle.
