I’ve been getting a few emails asking about Bonds. There is a wider issue to bonds and their inverse relationship to the equities market, and that is the Fed usually is accommodative to when markets are getting tight, and this wave helps bonds, and buying begets buyings. However, 5% inflation is usually the top of accommodative practices. ow that inflation is well above 5%, bonds will struggle because they will not get the first supportive wave from the Fed. Hope that helps.
Morning Update – June 14th, 2022