FNArena’s Weekly Insights – October 03 2022
In this week’s Weekly Insights:
-Hope Beyond The Macro-Burden
-Conviction Calls
-Research To Download
By Rudi Filapek-Vandyck, Editor
Hope Beyond The Macro-Burden
The fortunes of bonds and equities remain closely intertwined as inflation remains higher-for-longer while central banks continue tightening.
Year-to-date the S&P500 is down close to -23% but what is rather unusual is the Bloomberg Global Bond Aggregate Index is showing a near-identical -21%.
Embedded investing wisdom is bonds and equities are each other’s polar opposites; they’re supposed to compensate for the opposite side’s losses, but not so in 2022.
The hope is continued central bank tightening will eventually break the uptrend for price inflation, avoiding a repeat of the 1970s, though it may also break the economy and/or the financial system.
Flash backs of 2007-08 are returning to the global investment community as the Bank of England has come to the aid of suffering UK pension funds. On Friday one ABC journalist tweeted a rumour an unnamed international investment bank might be in trouble and the news spread like a wildfire around the world.
Most speculation is pointing at Credit Suisse, or Deutsche Bank.
