Opening Statement from the January 2022 Dividend Gems

Opening Statement from the January 2022 Dividend Gems

Originally published on January 16, 2022

Despite widespread presence of the Omicron coronavirus variant, the global economic recovery continues to make progress. But this progress remains vulnerable to supply chain issues which will most likely extend throughout much if not all of 2022.

To a much smaller extent, the recovery is also being pressured by high and rising crude oil and natural gas pricing. Oil and gas inventories are becoming constrained due to prior COVID production cuts and longer-term plans to shift to “renewable energy.”

Already for the first time in nearly two decades Germany will be a net importer of oil in 2022 due to an aggressive transition towards self-reliance on “green energy.” When you consider the importance of Germany’s role in the EU and global economy combined with the persistence of an energy crisis in the region, the overall picture is beginning to sour.

We believe the there is a sizable chance that low energy supplies combined with supply chain issues will continue to contribute to inflationary pressures in 2022. Thus, we are expecting...