AVIOR INSIGHTS – 7 Insights to Guide You Through the Second Half of 2022
As we enter the second half of the year, investors continue to grapple with inflation, higher interest rates, the Fed, and the prospect of a recession. If historical bear markets are any indication, the decisions investors make during this period will have long-lasting effects on their portfolios. Resisting the temptation to overreact to daily market swings, dwelling on the past, and losing sight of bigger factors has never been more...
AVIOR INSIGHTS – How Record Gas Prices Affect Inflation, Consumers, and Investors
Energy prices have been a major factor driving inflation higher this year. The strong economic recovery and the war in Ukraine have boosted the demand for energy at the same time that supplies of oil and natural gas have fallen. Gasoline prices, in particular, have become a symbol of the burden that inflation places on consumers, and where they go from here will affect consumer spending, Fed policy and stock...
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...