World Markets Update: September 26, 2022
All eight indexes on our world watch list posted losses through September 26, 2022. The top performer is India's BSE SENSEX with a YTD loss of 1.9%. London's FTSE 100 is in second with a loss of 4.92% and Tokyo's Nikkei 225 is in third with a loss of 8.20%. Coming in last is Germany's DAXK with a loss of 25.47% YTD.
Why Investors Are Facing Even More Market Instability
Frequent flyers are accustomed to turbulence on some flights. Indeed, many expect it. Despite such anticipation, however, the turbulence can once in a while create significant anxiety among even the most seasoned travelers.
Stale Pricing and the Risk to Bond Fund Investors
Bond mutual funds trade daily and are highly liquid, but the underlying securities are often highly illiquid, trading very infrequently. This mismatch means that bond fund pricing is unreliable, creating risks, especially for buy-and-hold investors.
Fed Finally Vanquishes Stocks From Asset Allocation Throne
For years, asset allocators had it easy: Buy the biggest American tech companies and watch the returns rack up. Those days are gone, buried under a crush of central bank rate hikes that are rewriting the playbooks for investment managers across Wall Street.
Notes on Inflation
The world will be going from an era of zero rates and loose monetary policy to higher rates and likely slower growth, except in certain sectors. Adjusting to this change will be both problematic and also full of potential opportunities.