Jack Janasiewicz offers his tactical take on the capital markets in this podcast recorded on July 7, 2022.
- The S&P 500® Index lost 8.25% in June, capping its worst month since March 2020, and the benchmark 10-year US Treasury also had a wild ride.
- The risks for recession are certainly increasing, but there are also signs that inflationary pressures may be easing, including falling prices for industrial metals and agricultural commodities.
- While sentiment remains poor, a lot of the bad news has already been priced into the markets.
- The Federal Reserve has made it quite clear that cooling off inflation is priority number 1.
- The key for the markets is to gain a clear understanding of where the rate hikes will end – the level at which the Fed believes inflation remains stable and growth is consistent with full employment. It’s a tough balancing act to pull off.
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