As we celebrate the holiday season with family and friends, we would add one more reason for giving thanks this year – The Fed may finally be finished raising interest rates….
Kicking The Can Down The Road…
The rally in risk assets continued in the second quarter as the U.S. equity markets successfully fought off concerns about the U.S. banking system and worries that the Federal government would exceed its debt ceiling in June. However, there are some signs of weakness on the horizon keeping the dreaded R-word ‘Recession’ front and center as the Fed continues its fight to rein in inflation…
Hop, Skip, Jump, or Pirouette… What Will the Fed Do Next?
After months of contentious negotiations, the global financial markets can finally breathe a collective sigh of relief that Congress and the Biden administration reached an agreement to raise the U.S. government’s $31.4 trillion debt ceiling and avoid a default, which even the most entrenched politicians determined would be bad for both the economy and their political futures…
BRAKING OR BREAKING, WHAT IS THE FED DOING TO THE U.S. ECONOMY?
After a promising start that began with a relief rally, global markets continued their year-to-date declines during
the 3rd quarter as record inflation, geopolitical tensions, lingering effects from the pandemic, and, most
importantly, fears that an aggressive Federal Reserve would push the U.S. economy into recession weighed heavily
on the broader markets.
The S&P 500 realized its worst first half performance since 1970. The 2nd quarter of 2022 proved to be especially unkind to equity investors as not even one of the eleven S&P 500 sectors were able to post positive results. Investors faced record high inflation, increased interest rates from the Federal Reserve, fears of a recession and geopolitical uncertainty caused by Russia’s invasion of Ukraine.
Inflation surging to 40-year highs, global supply chains broken by a pandemic, ubiquitous labor shortages, and a full-scale military invasion of Ukraine by Russia…
Stocks overcame a number of headwinds in the fourth quarter with the emergence of Omicron…
When the sun does not shine, the wind does not blow, and the water does not flow….
The markets rose to all-time highs in the second quarter across almost all markets as reflected here….
Stimulus and COVID vaccines move markets higher.
We hope this finds you healthy and safe in these unusual times.