Financial Performance of the First Quarter Ended March 31, 2022

The past season sucked.

Total assets during the first quarter decreased by 38.5%, compared to the end of the fourth quarter of 2021.

Total assets during the period from January to March increased by 12.7%, compared to the end of the first quarter of 2021.

Last time we said watching the macroeconomy is very important, and having a good understanding of the market is also very important.

We didn’t do well in the past season because we didn’t get what the market would react to the FED’s minutes. The market had expected the FED would raise the FED Fund Rate, but not expected to have Quantitative Tightening.

The war between Ukraine and Russia was adding complexity. It changed a lot of 2022 assumptions many people made at the end of 2021.

It seems that inflation is getting higher and the FED Fund Rate needs to be lifted quickly in the near future. The war between Ukraine and Russia is pushing inflation and it’s getting more and more difficult to have an economic soft landing in the future. Now we have a higher 2-year/5-year than 10-year/30-year.

We still think there are opportunities to let our asset net worth start to climb again.