IMCV - Stock Selloff

• The market is pricing in 50 bps rate hike at the next two meetings. This is a bit quicker than it would like and indicates that the Fed, who thought inflation was transitory, is now behind the curve and more likely to spin the economy into a hard landing.
• The higher that stocks go, the more likely the Fed is to take a more drastic approach to raising rates, which will, in turn, knock markets back down.
• We remarked last week that April is historically one of the best months of the year for equity returns. However, this April has been tough sledding. The S&P 500 slid further last week and is now down 5.7% on the month.

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