Quarterly CIO Letter: Third Quarter 2022
The third quarter was quite a ride, adding to a painful year for investors. The market was strong in July and the beginning of August on a misreading of Federal Reserve Chairman Jerome Powell’s remarks. Investors were hoping for a Fed pivot, and were beginning to price it in. We saw it as a head fake and took advantage of the strength to take risk off the table. In mid-August the market started selling off as Powell confirmed at Jackson Hole that his stance remained decidedly hawkish and the Fed was committed to continuing to fight inflation.
A Solid Rock in Turbulent Waters
Our favorite summation of SCA so far was in an e-mail from one of our new clients: “I’m coming on board with Stone Creek, a solid rock in turbulent waters.” Marc and I immediately looked at each other and said, “I think she just gave us our tag-line”. Much easier to roll off the tongue than “Strength and dynamism in a changing world.”