Can D.C. Chaos Halt the Bull Market?

September 30, 2021 Michael TownsendRandy Frederick
The long-running bull market is facing pressures as Congress continues to flail against complex issues that threaten the economy.

Listen on Apple Podcasts, Google Podcasts, Spotify or copy to your RSS reader.

Transcript Open new window

After you listen

As Congress continues to struggle with a quartet of complex policy issues, it's no exaggeration to say that the bull market and the economy are at risk. On this episode of WashingtonWise, Randy Frederick, Schwab's managing director of trading and derivatives, joins host Mike Townsend to discuss how the market might react, how investors could prepare for potential market disruptions, and how there might be opportunities for investors even as the risks to the market grow.

They also talk about the rising popularity of cryptocurrencies, the role of crypto in the economy of the future, and whether greater government scrutiny of digital currencies will eventually help increase the confidence of ordinary investors.

Mike also offers updates on the SEC chairman confronting the reality that his ambitious regulatory agenda may take longer than he hoped and how two surprise resignations could reshape the Federal Reserve as the central bank heads into a critically important year. 

WashingtonWise is an original podcast from Charles Schwab.

If you enjoy the show, please leave a rating or review on Apple Podcasts.

Will government policy affect your money?

Inflation Peaking but Pain Won't End

Indicators are pointing to an easing of inflation, but there are plenty of economic concerns to work through before the markets can truly move out of bear territory.

Midterm Elections Signal More Washington Gridlock

While results won't be finalized for some time, it is clear that we will have two more years of an extremely narrowly divided Congress.

Fed Hikes Aggressively, Signals More Hikes to Come

Stocks slid and Treasury yields rose as comments by the Federal Reserve chair suggested the "peak" fed funds rate may be higher than initially expected.

The policy analysis provided by the Charles Schwab & Co., Inc., does not constitute and should not be interpreted as an endorsement of any political party.

The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice.

The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision.

All expressions of opinion are subject to change without notice in reaction to shifting market conditions. Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed.

Investing involves risk, including loss of principal.

Past performance is no guarantee of future results and the opinions presented cannot be viewed as an indicator of future performance.

Indexes are unmanaged, do not incur management fees, costs and expenses and cannot be invested in directly. For more information on indexes please see www.schwab.com/indexdefinitions.

Diversification and asset allocation strategies do not ensure a profit and cannot protect against losses in a declining market.

There is no guarantee that execution of a stop order will be at or near the stop price. Correlation is a statistical measure of how two investments have historically moved in relation to each other, and ranges from -1 to +1. A correlation of 1 indicates a perfect positive correlation, while a correlation of -1 indicates a perfect negative correlation. A correlation of zero means the assets are not correlated.

Digital currencies, such as bitcoin, are highly volatile and not backed by any central bank or government. Digital currencies lack many of the regulations and consumer protections that legal-tender currencies and regulated securities have. Due to the high level of risk, investors should view Bitcoin as a purely speculative instrument.

All corporate names are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security.

Currencies are speculative, very volatile and are not suitable for all investors.

Supporting documentation for any claims or statistical information is available upon request.

Apple Podcasts and the Apple logo are trademarks of Apple Inc., registered in the U.S. and other countries.

Google Podcasts and the Google Podcasts logo are trademarks of Google LLC.

Spotify and the Spotify logo are registered trademarks of Spotify AB.

0921-1L1G