AVIOR INSIGHTS – Why Investors Should Keep Bear Markets in Perspective and Stay Invested
Global markets pulled back again last week following the Fed's announcement that it would tighten by another 75 basis points and keep rates higher for longer. Major indices are back to their June bear market lows with the S&P 500 falling 23% year-to-date and the Nasdaq down 31%. Bonds have also struggled as all interest rates across the inverted yield curve have jumped, with the 2-year Treasury yield rising to...
AVIOR INSIGHTS – Why Investors Are Focused on Core Inflation as the Fed Raises Rates
The stock market is adjusting to a new chapter in the inflation story that could keep Fed policy rates higher for longer. Recent market swings may be challenging, but this adjustment period is both natural and expected since higher interest rates directly affect the pricing of stocks and bonds. Tighter monetary policy also rekindles questions around whether the Fed can achieve a so-called "soft landing" as it walks the line...
AVIOR INSIGHTS – Why Underlying Market Drivers Matter More Than Daily Price Swings
Global stock markets have fluctuated all year, alternating between pullbacks and recoveries that have lasted months at a time. Depending on how you count them, the S&P 500 has experienced at least three distinct periods of declines that were interrupted by brief recoveries, with the longest rebound occurring from mid-June to mid-August. In an environment like this, it's natural for investors to focus on stock prices and returns as markets...
AVIOR INSIGHTS – What the Inverted Yield Curve Says About Inflation, the Fed and the Market Recovery
The market recovery has hit a bump due to uncertainty around interest rates and the Fed. Rates have driven markets all year with significant impacts on stock and bond prices, economic growth, the housing market, and more. In an environment like this, market expectations matter just as much, if not more, as the actual numbers, and this is reflected in the yield curve. Today, the yield curve is not just...