(Photo: Left to right – Tony Crescenzi, Barry Beach, Judie Birchfield, Tom Pudner and Claudelle Gehy)
Reston, VA – Mason Investment Advisory Services, Inc. hosted respected author and investment market media commentator Tony Crescenzi for a discussion of what’s driving increasing rates of interest and inflation, and how these factors impact the economic outlook for investors.
“The outlook is looking better for inflation, but it’s not gone out of people’s heads,” Mr. Crescenzi said. “It’s not out of our psyche and that’s really important.”
Mr. Crescenzi, who is also a senior vice president, strategist and portfolio manager at PIMCO, said we may already be experiencing a “mild recession,” based on recent reports from the departments of Labor and Commerce, but the soundness of the banking system “looks pretty good.”
“People are getting overly influenced by 2022, which we think is an anomaly,” Mr. Crescenzi said. “Last year was a period of remarkable volatility.”
Investors should be conscious of their “recency bias” that could derail long-term investment goals, added Mason’s co-Chief Investment Officer and Director of Research Tom Pudner, who organized the discussion as part of the firm’s ongoing efforts to coral the industry’s brightest minds in regular educational sessions – for the benefit of its advisors, and by extension, its clients.
The Mason philosophy advocates a long-term approach to investing and produces a strategically structured portfolio diversified across multiple asset classes, Mr. Pudner said, which continues to prove its value even during periods of heightened volatility.
“With a long-term orientation, investors are made whole,” Mr. Crescenzi said.
Despite recent volatility in the investment markets, largely spurred by the U.S. response and fallout from the Covid-19 pandemic and global conflicts, “recent market activity appears to reflect a return to old-style correlation returns and old-style volatility,” Mr. Crescenzi said.
“What we may be witnessing is something that is comforting to me, the return to cyclicality,” Mr. Crescenzi said. “There’s a playbook for it, and we simply have to follow that playbook. I think that is the way to invest right now.”
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