The start to 2022 has been a volatile one. High inflation, rising interest rates and commodity prices, and geopolitical tensions with war are weighing on global economies, supply chains and consumers.

U.S, Canadian and global equity markets started Q3 where Q2 ended, confidently charting a course forward. By the end of August, equities had notched a seventh straight month of gains, with the S&P 500 Index finishing near its all-time high and the TSX Composite Index on its longest winning streak in four years.

The global economy continued to recover in the second quarter helped by the rollout of COVID-19 vaccines, U.S. fiscal stimulus programs and supportive monetary policies from the Fed and other major central banks.

Markets in the first quarter of 2021 have been marked by ongoing volatility as the world recovers from the negative effect of the first waves of the COVID-19 pandemic.

Despite a resurgence of COVID-19 cases and renewed lockdowns in many regions, markets trended upward during the fourth quarter of 2020, boosted by growing clarity around the outcome of the U.S. presidential election and significant COVID-19 vaccine progress.

Recovering from the pandemic-related downdraft of the first quarter, financial markets enjoyed a period of relative calm and optimism through of the summer of 2020. Equity prices in many markets continued to improve, with some sectors moving sharply higher as lockdown restrictions eased and economic activity gradually resumed...

While the first quarter of 2020 was dominated by anxiety surrounding the initial outbreak of COVID-19 and the ensuing lockdowns and capital market declines, the second quarter demonstrated a remarkable bounce back in those markets – even with a resurgence of the virus in the U.S. and renewed lockdown measures.

Cy Korun discusses the current market and economic environment as we see it and provides some sound food for thought during these volatile times.