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Reading the volatility tea leaves

Nationwide Financial

In times of peaking pessimism and extreme bearishness, investors often try to parse how the financial markets are reflecting an array of risks. However, how might the market reflect its trepidations when trying to digest those risks? This behavior is like what was seen near the bottom in 2002, 2009, and 2020.

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Question #6 for 2023: What will the Fed Funds rate be in December 2023?

Calculated Risk

Once we reach that point, then the second step of our inflation fighting process, as I see it, will be pausing to let the tightening we have already done work its way through the economy. I have us pausing at 5.4 And Wall Street economists are expecting three or more rate hikes this year.

Economy 94
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No Pain, No Gain

Investing Caffeine

For long-term stock investors who have reaped the massive +520% rewards from the March 2009 lows, they understand this gargantuan climb was not earned without some rocky times along the way. As Albert Einstein stated, “In the middle of every difficulty lies an opportunity.”.

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Why volatility matters when investing

Nationwide Financial

Two of the most significant developments in the financial markets during 2022 were the breakout of higher interest rates and the return of stock market volatility. For a glimpse of how volatile stocks were last year, consider the VIX Index, often used as a gauge of fear or stress in the stock market.

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Market turmoil flips Fed script

Nationwide Financial

For investors, events in the financial markets over the last two weeks have underscored the importance of preparing for the unexpected. Market participants interpreted this as a potential half-point increase in the Fed funds target rate at the FOMC’s March 22 meeting. Fixed income volatility has unsettled equity markets, too.

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Market Commentary: Stocks Are Quite Resilient

Carson Wealth

Recent sentiment polls show a high number of bears while worries about the economy and earnings continue to expand. Think back to March 2003, March 2009, and March 2020. Although it might not feel like it, there are many reasons to expect stocks to bounce back and markets to improve. Why is this a good thing?

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Markets attempt a bounce on encouraging earnings

Nationwide Financial

This is similar to the market behavior near the bottoms in 2002, 2009, 2011, and 2020, reflecting the willingness of institutional investors to dip their toe back in the water. Despite historic levels of investor pessimism, the S&P 500® Index has shown 2% gains in six sessions in the past month in an effort to bounce.