The seriousness of the Fed’s fight to lower inflation has been felt in both the equity and bond markets. Equity markets, as they typically do, discounted higher rates sooner than the bond market. While we have seen equities, especially technology companies, sell off we have seen bonds continue to sell off in a more dramatic fashion later in the quarter. For most of the past decade, stocks were really the only major asset worth owning. Today with yields above 4% there are alternatives to equity to realize decent returns. While inflation is higher than bond yields currently, it is likely that real returns will be positive over a 5-10 year period. This year has been a year where diversification has made a difference in performance. For those that are only invested in equity and fixed income, it has been one of the worst years on record. Hedge fund strategies are up to slightly down and holding private equity has been a ballast to portfolios.