Dear Clients and Friends,

Investment markets got off to a promising start in the third quarter before ending with a thud. After a challenging first half of the year, risk assets began a recovery in mid-June with the S&P 500 rising 17.4% between June 16 and August 16. Bonds also staged a rally with the Bloomberg US Aggregate Bond Index rising 4.3% over a similar period. The recovery proved fleeting, however, as it became clear that the Federal Reserve (Fed) was not close to pivoting away from hiking rates, causing the S&P 500 to end the quarter at new lows for the year.

In the latest Market Perspectives, our Colony Investment Leadership Team focuses on:  

  • A recap of the market’s performance during the quarter.
  • “Weighing the Risk of Recession” – As the Fed continues its unprecedented monetary tightening campaign, investors’ angst is slowly transitioning away from inflation and towards the risk of a recession.
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  • “King Dollar” – The dollar’s strength and its position as the world’s dominant reserve currency has a broad range of investment implications.

Read our commentary here or by clicking the below image. ­