“I continue to believe that the American people have a love-hate relationship with inflation. They hate inflation but love everything that causes it.” – William E. Simon
The most recent example of the quote above was the liquidity provided by the Federal Reserve during the COVID pandemic through stimulus and PPP loans. There has also been a slow building of a swelling governmental budget and accommodative banking practices with the use of quantitative easing (increasing the money supply). This caused increased stock prices, home prices, more economic activity, in turn more jobs, etc.… all things Americans love! Now we face the reverse as the Fed will be restrictive for the foreseeable future.
To any newlyweds reading this article, congratulations on taking the next step with your spouse! This month’s edition is intended to get you thinking about how you and your spouse can begin to handle your financial affairs from a joint perspective, even if that means handling your finances individually.
We are excited to be featuring our newest analyst Shelley Lein this week in our Employee Spotlight! Shelley joined our team in May and we are so grateful for all that she does! Learn more about Shelley here.
Yields across the treasury market have continued to rise this year as the Federal Reserve maintains its aggressive rate hiking plan to combat inflation. The rise in yields has delivered negative returns for fixed income investors across the bond market, with the broad index down double digits for the year. This dynamic has hurt broadly diversified portfolios that rely on the fixed income portion to offer ballast to equity exposure.