AIVL - Weekly Market Pulse: No Place To Hide

• Only one major asset was up last week: REITs. There were some negative developments that might explain the selling.
• With the drop in commodities and fears about the impact of the China slowdown, the immediate effect should be for inflation and growth expectations to moderate. We didn’t see that in bonds last week, but we are starting to see it this morning.
• For now though, the fears about economic slowing are still focused on next year. That could change if the Fed starts to sound less urgent about rate hiking, but that will likely require a more definitive moderation of inflation expectations.

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