Our expectation for a difficult Quad 4 macro-market backdrop is playing out well in 2Q22 with significant consequences for Industrials and Materials performance into (at least) the summer. The extreme ‘irrational exuberance’ in early 2021 driven by easy compares and massive fiscal + monetary stimulus cooperation could well be mirrored by asset price misery through 2022. This reset is in process and market extremes swing both ways.
Please join us for look at how we are adapting to an unusually difficult period of tightening into an economic deceleration. It has been decades since the Fed/fiscal ‘put’ has had such a low ‘strike’ price. Prices in our coverage will increasingly adapt to these new realities in a volatile deep Quad 4 backdrop. We’ll take the opportunity for positioned, avoiding vulnerable cyclicals and focusing our process toward ‘robust’ constituents.
