While it may seem like a faint memory, Q3 2022 began on a somewhat optimistic note. Inflation – especially gasoline prices – appeared to have peaked and there was a hope that inflation would moderate quickly, appeasing the Fed and avoiding a recession.
Q2 earnings were lower than the previous year but still strong – making the case for a soft landing and providing hope the market might look through the economic slowdown. This prevailing view from July through mid-August created a short-lived bear market rally for equity and credit markets.
Then came Fed chair Jerome Powell’s speech at the annual Jackson Hole conference…
Challenging Near-Term Outlook And A Case For Longer-Term Optimism
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