Every quarter, Canterbury's Outsourced CIO committee shares their observations of the market that impact the management of our discretionary portfolios in the Canterbury Outsourced CIO Commentary.
As companies and consumers emerged from long COVID-related social shutdowns in early 2022, the resulting increase in demand for goods and services was met with supply disruptions. These disruptions were prolonged further by lockdowns in China and the Russia-Ukraine war. Also, continued price increases and higher CPI readings indicated that higher inflation may not be so transitory. In response, major central banks went on high alert with a stance to raise interest rates quickly in an attempt to prevent 1970-style runaway inflation and get back to a 2% long-term inflation level.
Most of our clients have a long investment horizon, which allows them to ride through these market cycles. We assess markets and address any risks that could fundamentally affect investment portfolios. We strive to take advantage of opportunities created by any meaningful market dislocation in the near term and readjust portfolio allocations, so long as it is in line with the client’s long-term strategy as well as ongoing needs.