Systemic Risk Fears

Systemic Risk Fears
The biggest bank failure since 2008
Minutes of the January 31 – February 1 Fed meeting reflected expectations that the Fed would keep rates high for the remainder of 2023.
Skiers often hear explosions during their morning preparation as the resorts trigger mini avalanches up on the mountain.
Key Events: Russia actions exacerbate concerns about inflation and the US economy
Two key events drove the markets this week.
The old investing adage, “don’t fight the Fed”, was in full force in August as both stocks and bonds declined after
hearing a more resolute tone from Federal Reserve Chair, Jerome Powell, regarding the path of interest rate hikes
in pursuit of blunting inflation
On Tuesday, then again on Wednesday, the markets were greeted with news of higher-than-expected inflation.
Key Events: The dominant news this week was the passing of Queen Elizabeth II
The old investing adage, “don’t fight the Fed”, was in full force in August.
Markets marched expeditiously higher in July as investor optimism increased on signs that inflation may be softening.