BSJO News and Press, Invesco BulletShares 2024 High Yield Corporate Bon From 10/11/22

Summary Until the war is over and energy markets have normalized, it is hard to put a floor on the euro, as the situation can deteriorate rather quickly. Further rate hikes by the Fed and aggressive QT will put more upside pressure on the dollar and more downside pressure on the e...

Summary When U.S. headline inflation dropped between June and July, it fueled a strong midsummer rally based on hopes that central banks might soon begin to ease their policy tightening. However, while we are not convinced the economic outlook is yet reflected in earnings outlooks...

Summary Rising prices continue to confound expectations that slowing global growth will ease inflation pressures. Financial market turbulence may be here to stay for some time. The ability to rebalance negatively correlated assets helps generate income and potential return whi...

Summary We believe it is unlikely that Fed Chair Jerome Powell will navigate a pivot to a less-hawkish stance before early in 2023. We expect China to grow at a meager 2%-3% pace in 2022, with the potential for these risks to bleed into 2023, as a slowing developed-market consumer...

Summary In September 2022, there is no denying that inflation is back, and with a vengeance, though we can still debate how quickly it will fade, and to what level. Since 2008, it has become fashionable to attribute all movements in interest rates to Fed action or inaction, and as...

Summary Stocks are now back down to the lows set in June and sentiment is as negative now as it was then. There is a long list of technical items that have hit levels or rates of change we associate with bottoms, short- or long-term. The economic data last week was mostly abou...

Summary Last week brought the third consecutive 75-basis point rate hike from the U.S. Federal Reserve. The week also brought more signs of this rapid hiking cycle reverberating worldwide. We think credit spreads can offer a remunerative and relatively calm haven amid the vola...

Summary Although consumers are benefiting from robust labor markets and strong balance sheets, they appear reluctant to buy high-cost durable goods. A key to navigating inflation risk is understanding its relationship with asset class returns. Historically, high-inflation episodes...

Summary As we start the third week of September, with the US Fed’s much-telegraphed rate hike on Wednesday (+.75 with some 30% betting odds of a full percent!), markets are peaked. To date, Canada’s TSX -13% is just a quarter through the price correction experienced ...

Summary The first half of the year saw GDP contract slightly and GDI expand slightly, and I interpret that as little to no growth. The money market futures I follow and the market based models I track all put the peak in rates somewhere between March and June of next year. I d...