Will the Fed pause its rate hikes as markets correct? That is the question that everyone is trying to answer. Of course, after more than a decade of monetary interventions, investors have developed a “Pavlovian” response to market declines and the “Fed Put.”
The second quarter of 2022 continues with intense volatility. Both equity markets and bond markets continue to unravel the complexities of supply constraints, stagflation, hawkish Fed policy (and the velocity of rate hikes), slower domestic and global economic growth, geopolitical headwinds (i.e., the Russia-Ukraine war), the commodity "Supercycle," persistent COVID-19 demand woes (i.e., China lockdowns), and potential Gray Rhino events (spurred by fears of the current environment). Recessionary fears and a flight to safety remain investors' top priorities.
“Don’t be bearish.” That was the message delivered by a Wall Street Journal article in August 2021, discussing the “new generation” of “financial media stars.” To wit:
“Don’t be bearish.” That was the message delivered by a Wall Street Journal article in August 2021, discussing the “new generation” of “financial media stars.” To wit:
Buying stocks is easy; the hard part is knowing when to sell. I read an excellent article recently by Michael Batnick on his trials and tribulations in owning a stock. To wit:
The discretionary sector struggled as did all growth and quality-oriented areas of the market in 2022. That was a classic re-set and a raging opportunity to add exposure.
The Institute for Supply Management’s monthly survey of purchasing managers came in below expectations for August, while the Bureau of Labor Statistics jobs report indicated that nonfarm payrolls expanded by only 142,000 jobs during the month (against expectations of 161,000 jobs).
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