Market Trends & Outlook

As the economy continues to recover with inflation increasing, many investors are starting to realize that the tech-fueled V-shaped recovery may have caused equity valuations to trade at a premium.

As a follow-up to my last post on the massive investment opportunity in leading luxury goods brands, I wanted to drill down into a particular category within the luxury goods industry. 

The most considerable risk to markets has naturally started to shift as COVID-19 uncertainty fizzles out. Inflation, monetary policy shifts, and accelerated economic recovery have emerged as the refocused market risks.

The seemingly unlimited fiscal and monetary stimulus seen in the past 14 months will have consequences. We believe part of these consequences will show up in the form of inflation.

The seemingly unlimited fiscal and monetary stimulus seen in the past 14 months will have consequences. We believe part of these consequences will show up in the form of inflation.

Social status quos will remain challenging to break as excuse maintenance of present circumstances for many will likely linger for years. Permanent changes to the 5-day work week, city living, suburban population increases, and significant public events will probably take many years to normalize as the stigma of COVID-19 will remain challenging to ignore.

As COVID-19 uncertainty starts normalizing, social investing subsiding (post-stimulus checks), and stock market appreciation stalling (compared to mid- 2020 and early 2021 levels), many investors began to seek answers to the most coveted questions in finance: "When is the next market bubble?", "What is the catalyst of this market bubble?" and "How do we (investors) profit or avoid its shockwaves?"

Wealth around the world has never been higher. Between​​ strong home price appreciation globally and a decade long equity market bull market, total household wealth is approximately $400 trillion. Yes, you heard that right, $400 trillion.