Market Review April 2022

Julie Miller |

The current moment recalls the famous Mark Twain ad- age – “history doesn’t repeat itself, but it often rhymes” – when comparing economic and geopolitical conditions to those of the 1970s. Clearly, the US and its Western allies find themselves in something of a new cold war, with the Russian invasion of Ukraine harkening back to the Arab states’ attack on Israel in 1973, or perhaps the Soviet inva- sion of Afghanistan in 1979. Certainly, the implications of this conflict are more dire considering the actors involved, not to mention the non-zero risk of nuclear weapons be- ing used. Furthermore, while inflation was already a prob- lem before the invasion, the impact of the war on food and energy prices threatens to unleash a bout of stag- flation (slow growth, high inflation) which could rival the economic malaise of the 1970s.

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