In an environment set up to be a lost decade for many traditional asset classes, a potentially compelling option is moving from a 60/40 to a 50/30/20 portfolio allocation model to integrate a fund like the Catalyst/Millburn Hedge Strategy Fund (MBXIX), which has generated positive returns in both bull and bear markets.
No recession. That was the recent declaration from Treasury Secretary Janet Yellen, noting that consumer spending, industrial output, credit quality, and other indicators don’t suggest economic risk.
As expected, Wall Street wins again. In 2020 and 2021, retail investors were chasing financial markets recklessly. Armed with sites like Reddit WallStreetBets and a Robinhood trading app, not to mention young investing mentors on social media, they believed they had the Wall Street “tiger by the tail.”
The Federal Reserve once again raised interest rates 75 bps on Wednesday. See below for insights and initial reactions from the investment professionals across the Catalyst Funds and Rational Funds networks.
As we enter the second half of the year, many questions remain regarding the trajectory of financial markets and the economy. Our stance on stagflation (or "recession-inflation") remains steadfast. Drawing parallels to the mid-1970s, structurally, we are in a stagflation environment amid 41-year high supply-side inflation (driven by soaring oil prices and food prices), slowing GDP, and the eventual unravelment of the tight labor market.
Basic economics says that companies can only set prices at a level where the current supply will meet demand. Moreover, looking at prices in a vacuum is also very misleading because it doesn’t account for changes in the firm’s input or operating costs.
Basic economics says that companies can only set prices at a level where the current supply will meet demand. Moreover, looking at prices in a vacuum is also very misleading because it doesn’t account for changes in the firm’s input or operating costs.
For months, investors have been scaling what feels like an endless wall of worry. Each concern that gets resolved seems to spawn new uncertainties, yet the market has continued its relentless climb higher.
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