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Market Volatility

Navigating when markets get rough.
CONTENT WITH Market Volatility

Navigating when markets get rough.

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Inflation fears were the primary catalyst for Wednesday’s market drop.
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The shortage of supplies indicates risk of economic weakness coupled with rising prices.
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The stock market has been generally cheering strong economic data; but history shows that boom economic conditions may already be largely priced in.
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The Federal Reserve made no change to its interest rate or asset purchase policies; while strengthening its economic outlook and viewing inflation risk as “transitory.”
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In recent months, two investment themes have been rewarding investors with outperformance: defense sector companies and those participating in share buybacks.
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Although earnings season has a ways to go, the results have been strong enough to significantly boost growth expectations, while also easing some valuation concerns.
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The U.S. economy remains on solid footing, continuing to move into a period of exceptional growth.
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The specific set of conditions that have historically characterized the start of an investment bubble appear to be forming.
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Trendy and speculative trades have gained micro bubble status and rolled over of late, but their weakness hasn’t infected the broader market.
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Policymakers in major economies have pointed to 2023 as the date the stimulus payback may begin.

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