“Paper money eventually returns to its intrinsic value – zero” – Voltaire, 1729
Dear Investor,
A lot has transpired between the end of 2021 and the end of the first quarter this year. The
stock market appears to have peaked in early January, ushering in a likely bear market for the
foreseeable future. The economic fundamentals underlying the stock market are rapidly
deteriorating, as the virus crisis subsidies handed out to households by the Government – the
so-called “stimmies” – have largely been spent. Price inflation continues to get worse. In
response, the Fed has embarked on an interest rate hike cycle along with a general tightening
of monetary policy.