Despite the recent arrival of the Omicron variant, the main issue affecting the markets remains inflation.

The last quarter has had its fair share of ups and downs. The first stumbling block was the government's decision to restrict the use of AstraZeneca to the over 50s due to the risk of blood clots.

Over the last month, the vaccine rollout in the US and the UK has forged ahead with full force. Initial analysis suggests that the vaccination programs have significantly reduced deaths, transmissions, and hospitalisations, which has brought about a rising sense of confidence.

Financial markets have certainly had their ups and downs this year. Interest rates on savings are at record lows, while some share markets have reached record highs. Logic suggests that neither can last, but 2020 has been a year that's been anything but logical.

Share markets have remained surprisingly resilient in recent times despite being faced with the worst economic conditions in around 80 years and the worst pandemic in a century.

Recently we have seen improvements in the virus cases and the financial markets. There is enthusiasm about the relaxation of restrictions and the prospect of getting back to some type of normality.

We want to continue our communication with you, and we now have our final results for March.

The last week has seen share markets recover some of the previous losses. This often occurs when least expected during bear (falling) markets. These are relief rallies or bear market rallies. Of course, the unprecedented stimulus has also had a significant impact.

The dramatic moves have continued and are causing concern. We did have a more detailed update drafted, but the speed of the changes warrants some briefer comments now. We have deliberately waited until our share market opens before completing this.

Firstly some good news.

The market falls began in February and that month saw the Australian share market down by 8.08%, and the US share market fell by 8.41%.

We felt it appropriate to provide a brief update on the recent share market falls and how we are positioned in the DMG Diversified Portfolio