Higher for Longer - September 2023
While the Federal Reserve chose not to raise the Fed Funds rate last week, Chairman Jerome Powell made it clear during his post Fed meeting press conference that rates will stay higher for longer. This took some by surprise. After living through over a decade of interest rates near 0% the stock and bond markets are now digesting the idea rates may stay higher for longer, offering a real rate of return over time. Such digestion can cause uncertainty, fortunately uncertainty often creates the next set of opportunities.
While the Federal Reserve chose not to raise the Fed Funds rate last week, Chairman Jerome Powell made it clear during his post Fed meeting press conference that rates will stay higher for longer. This took some by surprise. After living through…
Reflecting on the past two quarters, we are struck by the significant reversal that has occurred in financial markets. Stocks and bonds finished the year near their lows as investors feared a Federal Reserve intent on stomping out inflation would…
2022 was a year characterized by abysmal returns for both stocks and bonds. Large company stocks, represented by the S&P 500 fell nearly 20% for the year. Small stocks (Russell 2000 index) fared slightly worse. Technology and growth stocks,…
After six consecutive 0.75% increases the Federal Reserve increased the Fed Funds interest rate on Wednesday, December 14, 0.50%. On Thursday, December 15, the Bank of England followed with a 0.50% increase to their own policy rate after having…
The selloff in markets continued in the third quarter. Below is performance data on various indices for the quarter.
After a wild week of trading in the markets, a few paragraphs from our April 2022 essay couldn't be more appropriate. The full Newsletter can be found here: KLCM Newsletter.
With the future seeming incredibly uncertain and the investment landscape…
