Volatility
November 29, 2022
In April, we highlighted the tight correlation between the size of the Federal Reserve Balance sheet and the S&P 500 Index. Generally, when the Federal Reserve adds liquidity by expanding its balance sheet through Quantitative Easing, volatility is suppressed, and asset prices generally rise. The opposite was true when the Fed paused QE or removed liquidity through Quantitative Tightening, as […]
April 21, 2022
Market volatility has been on the rise this year. At its worst levels, the S&P 500 Index was down more than 12% from the start of the year before cutting those losses in half by quarter-end. There are plenty of headlines to blame. Record inflation, the Russia/Ukraine conflict, and interest rate hikes are certainly contributing to the increase in volatility. However, […]
April 3, 2020
What Happens Next? Analysts, commentators, and managers are all taking turns making predictions about where financial markets will bottom. While modern markets have never faced a global health pandemic with the magnitude of COVID-19, history is filled with examples of unexpected headlines and “Black Swan” events that take analysts and investors by surprise. In fact, that’s how most Bear markets […]
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