Wynn Harvey Wealth Counsel 2022 Outlook - Inflation, Interest Rates & Monetary Risk

For some time now, headline news has been dominated by speculation about inflation; Is it transient or sticky and how will central banks around the world use interest rates to keep it under control? It's been 40 years since inflation has had such an effect on the economy. While we don't have a crystal ball, bond markets have already priced in four future rate increases here in Canada. 

A big part of our job is to ensure your investment portfolios are positioned to cushion against any price volatility that occurs against a back drop of expensive market darlings and rising interest rates. We are in constant communication with our fund managers, and we keep a close eye on the macro "big picture" landscape to make informed decisions on how to position in a rising interest rate environment. We believe the risk we face ahead will result from monetary policy changes or "monetary risk".

In our 2022 Outlook, we recap what worked well in 2021, changes and challenges we expect to see in 2022 and a summary of how we think about risk; how not only risk tolerance but risk capacity are key factors that drive the recommendations we make for investments in your portfolio. Our goal is to provide a reaffirmation of our principles for portfolio design, which is a fluid and ongoing process.

Our 2022 Outlook Letter can be found here.