At a time of continued volatility and lack of predictability in the markets we at Sovereign Wealth Management thought it would make sense to communicate our basic thoughts on this situation with our clients and others interested in our views.
Interest rates, being the price of money, always tighten liquidity when they are raised by the fed, as has happened recently. The increased volatility is compounded by a sense in the market that due to the higher inflation the Fed is not able to step in to rescue the stock market as it usually does by lowering rates.
This has certain repercussions for markets expectations. We're watching the markets closely new allocating potential next steps.