Donville Kent July 2022 Letter – Within the Walls

The combination of extraordinary events such as the pandemic, enormous policy stimulus, and the war in Ukraine has driven the recent surge in inflation, which is the culprit behind the stock market decline. All of these events are typically “one-time” in nature and we’re already seeing many of the negative occurrences associated with each starting to subside. The price of wheat spiked over 80% on the news of the invasion of Ukraine. The price of wheat is now below where it was before the invasion. The yearly change in the Money Supply (M2), which saw an unprecedented spike due to stimulus payments, is now back to pre-covid levels. Finally, the supply chain issues brought about due to lockdowns are subsiding....