Quick Takes - January 2022
In recent weeks, stock markets have displayed much more rapid price movements, what we call volatility.
The Federal Reserve, the U.S. Central Bank, has announced that they will raise interest rates starting in March (2022). This rate hike will be the first in over a decade (2018 being an exception). All asset prices over the past decade and more, stocks, bonds, and real estate, are all valued with these low-interest rates; thus, we see market uncertainties today given higher interest rates.
Remember, we discussed higher interest rates (and inflation) in our July 2021 'The Fed is Trapped' article. (Click here https://tinyurl.com/rdurctuy to read, updated January 2022.)
Summation: OK, what's happening in the stock markets today we wrote about in July 2021. So, no drama, no surprises, and no panic for us.