Insights

Navigating the markets: Fed rate hikes, inflation, and stock performance in focus

To reiterate what we wrote last month, what investors think is next from the Fed has been the driving force for both the bond and stock markets. Most of the same themes remain in play: the Fed signals a slowdown, jobs remain strong, medium- to longer-term bond yields have fallen, and inflation is slowing.

Stocks rose despite the Fed continuing on a path of rate hikes; history favors long-term investors.

What is Sequence Risk? Are there new opportunities?

So far, it’s been one of those years.

What happened yesterday? The S&P 500 went down more than 4.3%, the largest one day drop since June 2020.

Inflation, transitory at last?

As the Fed raises rates, savers are rewarded, borrowing slows, and stocks are stuck in the middle.

In this issue we discuss bear markets, emotions, and opportunities.

Should your plans change when markets are bearish?