Midterm Election Seasonality - YES! It’s been a Real Thing | News or Noise

2022 has been a bad nine months for investors in stocks and bonds globally. While our team had expected our first market correction since the Covid bottom, Investors suffered the first broad bear market in years. Stocks roundtripped two years of gains through the end of the third quarter, which while common during Fed rate increases, is not enjoyable. Click here for more!

What's the culprit? Treasury bond interest rates increasing at the fastest pace in decades during a normally weaker mid-term election year, amid slowing growth. These things have combined to crunched risk assets. In the last four weeks, the Federal reserve interest rate increase path has been so fast that it's stressing and breaking esoteric parts of the financial markets.

Much as Alan Greenspan's doubling of interest rates caused the Mexican currency crisis in late 1994, Chairman Powell's race higher is causing stress in other countries and other assets beyond our shores, most notably in Britain, amongst U.K. pension funds and the British currency, the Pound.

That deserves a Charlie Brown. Ugh.

 

Does this news affect your investments? Is it news that you can use to decide when and how to invest? Is this topic Newsworthy, and should you be paying attention?

 

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