You could be forgiven for thinking that the issue of rising inflation and interest rates had come out of nowhere given the frenzied doom and gloom among some sections of the media.
But, as regular readers of this newsletter will know, the onset of tougher financial conditions was something that had long been anticipated.
The likelihood is that the Bank of England base rate will continue to rise by 0.25% month on month for much of the rest of the year and that inflation could top 10% as many economists expect.
But while the pressures facing many households will doubtless intensify during the remainder of 2022, it is likely inflation will return to more acceptable levels during 2023.
This is not a cyclical problem, but rather one that is driven by year on year increases in prices with those price increases being significantly more acute this year.
Nevertheless, for the time being, the UK and wider world economy continues to face uncertain times and a volatile period for stocks with many experiencing sharp falls in values.
Fixed rate investments and cash held in the bank are particularly badly hit during periods of high inflation, whereas property, infrastructure and commodities typically fare much better.
In times of such volatility, the importance of having a long-term, well-balanced and, crucially, diversified portfolio is brought sharply into focus.
On this note, our team is currently in the final stages of reviewing client portfolios with limited changes anticipated.