2022 started with rising interest rates, high inflation and an unanticipated war in Europe. Aside from the market fragility related to the Ukraine-Russia conflict, inflation will continue to be the key variable to monitor. The global economy seems to be into a period of permanent inflationary pressures, with CPI reaching its highest level in 30 years. Inflation data has been stronger than expected across the board and, particularly for Europe, we expect an accelerated path to policy normalization than what is currently priced in. Stagflation is now the baseline scenario while a recession is gaining traction as a tail risk, especially considering the late and sudden shift in tone by the FED and other CBs. In this respect, and considering the uncertain times, we continue to place a strong focus on the long-term potential of value-oriented strategies.