January 13, 2023
In 2022 there was almost a complete return to normalcy and acceptance that COVID is now a part of our lives. However, the end of the pandemic also meant the end of pandemic assistance and the market did not take kindly to tighter fiscal and monetary policy or the high inflation that was spawned by those highly accommodative policies. The war in Ukraine rages on and continues to cause great humanitarian trouble across Europe. Oil prices have moderated, but high energy prices caused immense stress on the consumer through early 2022. In terms of the consumer, we saw spending habits shift from goods (new appliances, home renovations, pandemic related hobbies, etc.) to services (travel, restaurants, experiences, etc.). Entering 2023, the consumer remains strong but with dwindling savings. It has been estimated that the pandemic savings bump should be depleted by the summer.