Market insights and analysis

How dynamic, risk-managed investment solutions are performing in the current market environment

1st Quarter | 2022

Market insights and analysis

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Updates on how dynamic, risk-managed investment solutions are performing in the current market environment.

Gold prices broke decisively above the $2,000.00 per ounce barrier, hitting $2,075.00 per ounce, before falling back to $1,985.00 per ounce to close the week. (See the chart below.)

The government reported that consumer inflation continued unabated, hitting a 40-year record high of 7.9% in February. Not only is inflation hitting new highs, it is also accelerating at an accelerating rate!

These numbers were hit BEFORE the inflationary effects of the Russian invasion of Ukraine and the accompanying economic sanctions. The effects the government has warned us about should start showing up in March’s numbers.

Then, the U.S. Congress added to it passing a $1.5 trillion emergency spending bill.

In this environment, the Federal Reserve’s response has been to fight inflation by raising interest rates the minimum 0.25% at its next meeting. It would appear there is no serious attempt on the table to slow down inflation, much less contain it.

As Bitcoin and other cryptocurrencies fail to protect against inflation, investors turn to the historically proven inflation hedge—GOLD.

Rick Andrews is president of Avant Capital Management.



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