Recent developments in the stock markets have seen a marked increase in volatility. At the same time the yield curve has clearly inverted. To make matters worse the Treasury will have to find more than $ 1 trillion to finance the current government deficit. This will result in a shortage of liquidity and possibly a credit crunch, which the Fed can counter with rate cuts and QE. It is to be expected that the Fed balance will increase significantly. Investors should prepare in advance for the turmoil.
Volatility
After the extended period of exceptionally low