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Quantitative Tightening
The goal of quantitative tightening (QT) is to help reduce inflation. At this time, inflation is at a multi-decade high, with headline inflation just over 8%. The Fed is attempting to apply QT without slowing economic activity too much.
Rear-View Driver
Price movements and recession periods don't always follow the yellow parallel lines of a no-pass zone. Instead, they are part of a dynamic business cycle that can impact financial markets in a variety of ways.
Feeling Sentimental
When inflation is high, consumer sentiment tends to be low. This makes intuitive sense; as we're shopping and seeing higher prices, our dollars are not going as far as they used to. This is not the first time we have seen this setup with sentiment low and inflation high.
Markets, when in decline
Larger daily price movements that negatively impact investors on the way down tend to be close neighbors to those price movements that benefit investors on the way up.
Escalator Up, Elevator Down
Why does it seem like the market goes down faster than it goes up? We dive into the notion that stock market movements seem to take the escalator up and the elevator going down.
US Treasury Series I Savings Bonds
US Treasury Series I Savings Bonds. These are bonds issued by the US treasury that earn interest and are protected from inflation. The yields on these bonds have moved quite a bit higher in recent months.
Exceeding the Bounds of Moving Averages
Financial markets and economies can move like a pendulum swinging side to side, exceeding the bounds of moving averages on occasion. While it may be tempting to believe that today's conditions will be with us forever, history reminds us that this too shall pass.