Economic Insights

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.”

As we approach the halfway point of 2022, investors remain uncertain of what to expect throughout the next six months.

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:

Catalyst and Rational investment teams initial reaction to today’s 50 bps rate hike from the Federal Reserve and the subsequent Q&A session.

Catalyst and Rational investment teams initial reaction to today’s 50 bps rate hike from the Federal Reserve and the subsequent Q&A session.

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: