QVMS - World Cautiously Optimistic On Hopes Of Peaceful Resolution To War

• Based on new hopes for a peaceful Ukrainian/Russian resolution to their nearly month-long war, the world is cautiously optimistic.
• Although China has been trying to help Russia avoid economic sanctions, China is struggling with its own debt problems from Evergrande, slowing economic growth, and new Covid-19 lockdowns.
• Surging nat gas prices are now responsible for higher utility bills from both heating and electricity generation. Wholesale diesel and gasoline prices are also causing increased prices in goods and services. Crude oil prices have been on a slippery slope in the past few days, which would cause worldwide energy demand to moderate a bit.
• The ESG investing world is very worried lately, since they are notorious for avoiding stocks with any connection to fossil fuels, even natural gas. As a result, ESG returns are devoid of exposure to the strongest 2022 industry sector (i.e., energy), so their returns relative to benchmarks are plunging.

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