ISCV - Quick Thoughts: On The U.S. Markets And Volatility

• We are emerging from a period of unprecedented fiscal and monetary stimulus which flooded the markets with liquidity. Now this liquidity is slowly being withdrawn, as the Fed seeks to combat inflation.
• As we move from a period of low inflation and excess liquidity to one with modest or higher inflation and less liquidity due to central bank tightening, we view this as a normalization of market conditions.
• Finally, as we look at what is happening with inflation today, it is important to recognize this is not the inflation of the 1970s.

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