As we enter the year’s third quarter, rising prices are squeezing companies and consumers alike. Consumers are feeling squeezed as they pay more for rent, more for food, and more for gasoline, in some areas of the country more than $6 a gallon. While salaries have risen, consumers are getting squeezed more than they are getting compensated. Companies are feeling squeezed as they pay more for input costs, causing operating margins to come under pressure for the first time in many years, in most cases, outside of perhaps a quick blip due to Covid. Somewhere, something has to give, whether it’s companies forgoing earnings to assuage customers or consumers skipping purchases across a variety of goods and services as a way to keep household spending in check.
It is with that backdrop and uncertainty around inflation that we offer our outlook for various asset classes. If you have any questions, please reach out to your Edge financial advisor for further discussion.