November 2022 update - CFA update; state of inflation
- Konrad Gateau
- Nov 15, 2022
- 2 min read
I am excited and proud to announce that I’ve successfully passed the Level 3 exam of the CFA designation. This has been an arduous process with countless hours of studying and moments of self doubt, but I’m glad I stuck with it. My membership is now pending review before I can officially call myself a CFA Charterholder, but I’m looking forward to further proving my dedication to the field of investments to the benefit of as many people as possible, near and far.
On the economy, inflation in the U.S. has finally come down meaningfully. In October, annual inflation was down to 7.7%. Investors cheered and markets jumped at the news, hoping that the Federal Reserve will slow down interest rate hikes and eventually stop hiking altogether sooner. But that optimism might be misplaced. Over 7% inflation is still painfully high for the economy and for the average American or Canadian. As the President of the San Francisco branch of the Fed said, “…I can’t reiterate enough that one month of positive data on inflation does not a victory make”. So, the Fed will continue hiking until inflation falls more. The Bank of Canada is also being very cautious about early signs of inflation slowing. Governor Tiff Macklem in a recent interview admitted it will be painful process and might even cause a mild recession next year, adding “the unemployment rate is going to go up”. Already there are cracks in the economy: several big companies, including Amazon, Microsoft, and Disney have announced they will do layoffs in the next few months. It is again very hard to be optimistic about market returns, so staying into safety mode is the better option.
Sample portfolio for a Canadian investor
Sample portfolio for a US investor
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