This year has been an unprecedented time for investors, as 40-year highs in inflation and fears over a looming recession have led to record losses in fixed income and bear market declines for most equity markets.
However, there are still some investors holding out hope that a “pivot” can effectively reverse the upward trend in bond yields and reinvigorate stocks. Pivot refers to a reversal in the Fed’s current path of restrictive policy to something more accommodative…or at least neutral.
But how did we get to a point where investors are already thinking about a change in policy, when the Fed just embarked on its rate hiking campaign in March?
This post appeared first on ETF Trends.