AVIOR INSIGHTS – How the Fed’s Historic Rate Hike Affects Consumers and Investors
In response to worsening inflation, the Fed raised policy rates by 75 basis points last week, the largest individual hike since 1994. The Fed also sharply lowered their growth projections, increased their inflation forecasts, and boosted their year-end rate target to 3.25%, while emphasizing that they are "strongly committed to returning inflation to its 2 percent objective." At his press conference, Chair Jerome Powell acknowledged that accelerating inflation is difficult...
SPECIAL UPDATE: How Investors Can Position for Bear Markets
The S&P 500 officially fell to bear market levels this week. Rapid inflation across the economy has affected consumers and businesses, raising questions about spending and corporate profits. These pressures have pushed interest rates higher across the curve, breaking a four-decade pattern of falling yields. This has prompted the Fed to tighten more quickly, with some now expecting a 75 basis point rate hike this week. Altogether, these events have...
AVIOR INSIGHTS – What Defines a Recession and Is a Soft Landing Possible?
The question at the forefront of investors' minds is whether the economy can achieve a so-called "soft landing" in the face of high inflation, rising interest rates, Fed rate hikes, geopolitical conflicts, and other challenges. A soft landing would require the economy to slow gradually without creating a downward spiral in consumer demand and business investment. While the market correction this year has created a challenging investment environment, especially with...
AVIOR INSIGHTS – How Diversification Helps Investors in Today’s Challenging Market
For some investors, it can be challenging to balance short-term market negativity with positive long-term trends. In the near-term, rising interest rates and international concerns are once again rattling the stock market. Last Friday, the S&P 500 experienced its second-worst day since 2020 by falling 2.8%. Both the S&P 500 and the Nasdaq are in correction territory (defined as a 10% or worse decline from all-time highs) and most other...