West Financial Services

There is much talk today that we may be headed for another recession. Our latest management letter, “Fishing for Confidence at Jackson Hole” includes a discussion of how the Federal Reserve, in an attempt to tamp down inflation, may create some unwanted economic side effects. Namely, higher interest rates, slower growth, and softer labor market conditions. The media is constantly bombarding us with this news.

During the depths of the pandemic, work from home businesses were, undoubtedly, huge beneficiaries of consumer demand for their services and products. First-order thinking was rewarded during this period, as investments into these stocks appreciated handsomely. While we experienced some uprooting of our lives and the impact of rapid change, West Financial was also brainstorming ways to intelligently invest in long-term COVID-winners.

Fishing for Confidence at Jackson Hole. In our October 3rd update, we mentioned disappointment and uncertainty being recent key themes. The factors contributing to present conditions are well-known: high inflation, central bank tightening, and possible escalation in the Ukraine war.