DOOO - Are We In A Bear Market Now? What Investors Should Consider
- The bear market's onset will be dependent on inflation, which is related on one hand to geopolitical factors in the immediate future, but also to assumptions about the economy.
- We think that the potential Russian invasion of Ukraine could cause a bear market on the basis that it would have ripple effects, due partly to sanctions, on commodity prices.
- Absent this, we think that the current inflationary environment is largely a consequence of supply side and not demand side factors, and believe that it can subside quite soon.
- The economy has likely experienced growth in productivity as a consequence of reorganisations of our economy due to COVID-19, and capacity is expanding rapidly.
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Are We In A Bear Market Now? What Investors Should Consider