SWOT Analysis:
A Blueprint for Success

A SWOT Analysis will identify internal strengths, weaknesses, external opportunities and threats to each component of your insurance company or government risk pool's investment process.

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Quarterly Investment Review: Q2 2022
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Both shares and bonds were under pressure in the second quarter as investors moved to price in further interest rate rises and an increased risk of recession. Inflation continued to move higher in many major economies during the quarter.

US equities fell in Q2 and posted the worst first half loss since 1970 and third worst first half performance since World War II. Investor focus was trained on inflation and the policy response from the Federal Reserve (Fed) for much of the period. The Fed enacted its initial rate hikes during the quarter and signaled that there would be more to come. Even so, the central bank admitted the task of bringing inflation down without triggering a recession would be challenging. The US economy looks robust, but signs of a slowdown are emerging.

Nominal market yields spiked again in June in response to the ongoing inflation debate and the Fed’s expected actions to quash it.

Barring a need to liquidate a fixed income security to support operations and most likely generate a realized loss, a fixed income security’s unrealized loss position will ultimately dissipate and then disappear upon maturity leaving only the return from its embedded yield behind.