March was, in short, a very difficult month for investors and for anyone trying to make sense of what is happening in the world.

For months, markets have been sustained by a Goldilocks environment: growth steady enough to support earnings, inflation low enough to keep central banks accommodative. March marked a sharp departure from that world. What started as a military escalation in the Middle East quickly became something much larger. The closure of the Strait of Hormuz sent energy prices to levels not seen in decades, and the effects did not stay in oil markets for long. Inflation fears resurfaced almost overnight. Central banks, which had spent the better part of two years preparing to cut rates, suddenly found themselves facing pressure to do the opposite. And across financial markets, almost nothing was spared.

What made March particularly unsettling was that the traditional safe havens all fell at the same time as riskier assets. For most investors, there was genuinely nowhere to shelter.

This is the Reverse Goldilocks: too hot where you don’t want it, too cold where you do. This update tries to make sense of all of it. We wish you a pleasant and insightful read.