Let’s Talk About Interest Rates
Inflation has been wreaking havoc in equity markets across the globe as investors continue to see the indiscriminate compression of corporate valuations and a seemingly endless decline in share prices. With the March 10th, 2022 Consumer Price Index (CPI) report indicating that inflation has risen again to 7.9%, the eyes of investors in the U.S equity markets gaze cautiously towards the Federal Reserve. This post will explore the Federal Reserve's most recent statements concerning their response to the increasing inflation pressures and what we might see going forward.
Inflation Is Here, Now What Do We Do About It?
The last several months have been challenging months for investors as fears of inflation, concerns over monetary policy, and a potential global conflict have firmly gripped the markets in a hurricane of fear and volatility. Let’s briefly look at how the market has reacted to these fears and what investors might do to protect their portfolios.
Best Options Strategies for Volatile Markets
The stock market has been extra volatile lately as war fears linger and the government is beginning to cut off the quantitative easing that stemmed from the Covid-19 pandemic. To take advantage of these market swings, traders can use options to bet on a direction or simply just on volatility itself. While options can be a great way to bring in some profits, they are complex and should not be used by beginner traders who do not understand them completely.
Who Removed The Easy Button?
The US financial markets entered a period of heavy turbulence at the end of November 2021 that lead to a significant decline in U.S equities over the following 3 months. At the time of writing, US-listed equities have seen the indiscriminate P/E compression of future cash flow-dependent businesses as stock prices continue to plummet in the wake of macroeconomic and geopolitical shifts. Let’s explore the three main catalysts causing this most recent stock market correction.