Since the development of the Covid vaccines, we have taken a constructive view on equities. While equity valuations were high, they were justified by an expected recovery in earnings.  With the second quarter earnings season behind us, have we been justified in our views? More importantly, has the recovery in earnings been sufficient to moderate the high valuations?

Welcome to this August 2021’s "CIO Office Monthly", a new newsletter where Parkview's CIO team offers their thoughts on global markets and provides their perspectives on what might be coming next.

In short:

Inflation expectations have rattled markets this year. Headline inflation rose sharply.  Commodity prices skyrocketed.  Supply chain bottlenecks are raising producer prices. Are inflationary pressures indeed taking hold as the US economy recovers from the Covid shock?