Entering text into the input field will update the search result below

Get Ready For 2018-Type Volatility In Stocks And Bonds

Ivan Martchev profile picture
Ivan Martchev


  • Hiking interest rates during a supply shock might be counterproductive, but there are plenty of things the Fed has already done to push inflation higher than it would otherwise be, and it has already helped the surge in home prices and stock prices.
  • The Fed intends to aggressively taper the infusion of electronic dollars into the system at a rate of $15-20 billion per month. We are already seeing the positioning for this tapering in both stocks and bonds. Increasing that taper rate can push rates higher and stocks lower.
  • If the supply bottlenecks abate in the next six months, inflation should moderate, with decelerating M2 growth. In the meantime, to get a handle on the inflation situation, Powell likely wants 10-year Treasury yields higher, towards 2%. His language and his actions can do a lot to help Treasury yields reach that level.

price of btc is going to breakout

franckreporter/iStock via Getty Images

Provided the pandemic is winding down, I think Powell would like to see the 10-year Treasury rate above 2%. It will cool down the real estate market, it might push stock prices 10-15% lower, and it may give the perception

This article was written by

Ivan Martchev profile picture
Ivan Martchev is an investment strategist with Navellier Private Client Group. Previously, Ivan served as editorial director at InvestorPlace Media. Ivan was editor of Louis Rukeyser's Mutual Funds Newsletter and associate editor of Personal Finance Newsletter. Ivan is also co-author of The Silk Road to Riches (Financial Times Press). The book provided analysis of geopolitical issues and investment strategy in natural resources and emerging markets with an emphasis on Asia. The book also correctly predicted the collapse in the U.S. real estate market, the rise of precious metals, and the resulting increased investor interest in emerging markets. Ivan’s commentaries have been published by MSNBC, The Motley Fool and others. Currently Ivan is a weekly editor of Navellier’s Market Mail and a contributor to Marketwatch.

Recommended For You

Comments (1)

bluescorpion0 profile picture
Inflation is a function of freedom
Disagree with this article? Submit your own. To report a factual error in this article, . Your feedback matters to us!

Related Stocks

SymbolLast Price% Chg
China Evergrande Group
SPDR® S&P 500 ETF Trust
Invesco QQQ Trust ETF
SPDR® Dow Jones Industrial Average ETF Trust
ProShares Short S&P500 ETF

Related Analysis

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.