2500+ years old – still true: “All warfare is based on deception. Hence, when we are able to attack, we must seem unable; when using our forces, we must appear inactive, when we are near, we must make the enemy believe we are far away; when far away, we must make him believe we are near.” Sun Tzu, The Art of War. (circa 500 BC

 

Friday Chart: 

Canadian household wealth (chart below): Canadian household net wealth ended 2021 with a bang, rising a stunning $3.6 trillion above pre-pandemic levels. More than half of the net wealth gains (57%) over the last two years have come from surging real-estate values.”

 

                            

 

 

Weekly Wrap :

•          The Fed: Investors’ eyes were focused on the Fed’s much-anticipated rate hike announcement. Although some economic projections were expected, there were some surprises. We explain what impact a new rate trajectory could have.
•          Shadow of war: The Russia-Ukraine conflict casts a pall over global economic growth, with Europe more vulnerable than most. Despite the EU’s decisive response, the region’s short-term outlook is subject to the war outcomes, and for now we prefer to reduce risk in European equities.
•          History suggests U.S. stocks could gain as rates rise – U.S. equities rallied this week through the Fed’s first interest rate increase, which signaled a slow but determined climb. This might be as big a caveat as the conflict in Europe.
•          Regional highlights: Canadian inflation hit 5.7% in February, highest since 1991; The Bank of England delivers a surprise dovish hike; China stocks surge as policymakers clarify stance.

 

More Here: Global Insight Weekly

 

Regarding Russians: Liam James, a Russian TV economic analyst made waves recently in a live TV interview when asked if he saw a future in Russian markets. His reply:

 

“Worst case I’ll work as Santa Claus as I did 25 years ago. Jokes aside, let me do this… He then raised a bottle of carbonated water, saying: “Dear (Russian) stock market, you’ve been close to us and interesting. Rest in peace.”

 

Lastly: Historian Stephen Kotkin, aptly notes that we don’t have a Russian problem, we have a Russian leadership problem. Listen to his Wall Street Journal interview here. Opinion: Free Expression It’s well worth the 30 minutes).

 

Buried in all this is the truth -- that markets aren’t markets when they’re manipulated by tyrants of any political stripe.

 

 

Enjoy your weekend!

 

Mark