Insights Getting Invested

Highlights

• Stock markets globally have sold off 10%–20% from recent highs, driven by Russia’s invasion of Ukraine combined with higher inflation and interest rates. Bond returns are slightly negative this year, and the Fed is poised to start raising rates on March 16. 
• Investor cash balances remain elevated at $5 trillion. Sentiment has turned decisively negative. 
• While the current environment is unique, history offers valuable lessons for getting invested. Determining the most appropriate target allocation is an important first step in the process, and moving to that target allocation sooner rather than later offers the best odds for success.