Inflation, quickly rising 10 year US Treasuries, and bankers concerned about the severity of a financial hurricane, all lead to higher volatility. There is no quick fix for this. Governments around the world have been experimenting with financial tools never used before which means outcomes will be unpredictable and messy.
Oil and natural gas prices affect everything from driving a car, to lighting homes and businesses, to the prices of medications. Prices will correct in time; however, I except higher prices to continue for longer than usual because of global depletion, little new development, and sanctions.
Consumers are feeling the pinch and starting to evaluate what is important.
Housing is starting to slow down from supply chain issues and now the 30 year mortgage rates are jumping to over 5%.
Bankers will start protecting themselves by reducing credit to reduce risk which creates a tougher economy.
Jamie Dimon, American billionaire businessman and banker, says, “brace yourself,” for an economic hurricane caused by the Fed and Russia Ukraine war.
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Data and rates used were indicative of market conditions as of the date shown. Opinions, estimates, forecasts, and statements of financial market trends are based on current market conditions and are subject to change without notice. References to specific securities, asset classes and financial markets are for illustrative purposes only and do not constitute a solicitation, offer, or recommendation to purchase or sell a security. Past performance is not a guarantee of future results.