Bond Market Review – 6/15/2022

Multiverse of Madness Friday was painful enough, but nearly every asset class got clobbered on Monday. Bonds had their worst 2–day drop since 1987. Stocks, bonds, gold, and silver traded lower. Bitcoin has lost another 26% since the release of Consumer Prices (CPI)....

Bond Market Review – 5/26/2022

Firestarter The Fed may be off to the races, but economic data is slowing – and Q1 GPD was just revised to a greater contraction. Q1 GDP was expected at –1.30% but was revised lower to –1.50%. Maybe that’s not overly negative, but the Price Index rose from 8.00% to...

Bond Market Review – 5/18/2022

Dazed and Confused Though the FOMC raised their funds rate with the largest hike since 2000 by a widely expected 50 bps on May 4th, investors were encouraged by Fed Chair Jerome Powell’s post–statement comments that increases of 75 bps were “not something that the...

Bond Market Review – 5/2/2022

The MagicalMystery Tour Changes in interest rates, inflation, stock prices, and Fed policy are not trivial. The consequences of errant policy or positioning can disrupt economies and easily lead to billions in portfolio losses for those on the wrong side of a move....

Bond Market Review – 3/22/2022

25 or 6 to 4 After 22 years, we found a way to work in this early–Chicago song as a theme! The Fed hiked 25 bps as widely expected but then signaled 6 more to come – at each of their upcoming (and remaining) 2022 meetings. Completing that thought, lone dissenting...