Having just lived through a once-in-a-generation crisis in the form of the COVID-19 pandemic, we’re now seeing the status quo of the past 30 years turned on its head. After decades of relative peace and falling inflation, we find ourselves confronted by increased geopolitical tension and rising inflation.
As investors, however, we’re seeing a return to some semblance of normality. I don’t mean that this environment is easy by any means, but for the first time in a long time we have positive nominal interest rates on holding cash. This changes the investment dynamic considerably compared to a couple of years ago, when we were forced to buy ever-more expensive assets in a world of endless liquidity in seeking to generate return.
Important Risks: Investing involves risk, including the possible loss of principal. • Foreign investments may be more volatile and less liquid than US investments and are subject to the risk of currency fluctuations and adverse political, economic and regulatory developments. These risks may be greater, and include additional risks, for investments in emerging markets. • Fixed income security risks include credit, liquidity, call, duration, event and interest-rate risk. As interest rates rise, bond prices generally fall. • Diversification does not ensure a profit or protect against a loss in a declining market.
The views expressed herein are those of Schroders Investment Management (Schroders), are for informational purposes only, and are subject to change based on prevailing market, economic, and other conditions. The views expressed may not reflect the opinions of Hartford Funds or any other sub-adviser to our funds. The opinions stated in this document include some forecasted views. Schroders believes that they are basing their expectations and beliefs on reasonable assumptions within the bounds of what they currently know. The views and information discussed should not be construed as research, a recommendation, or investment advice, nor should they be considered an offer or solicitation to buy or sell any security. This information is current at the time of writing and may not be reproduced or distributed in whole or in part, for any purpose, without the express written consent of Schroders or Hartford Funds.
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