Treasuries Respond to Fed's Rate Hike Binge (9/21/22)

09/21/22 • 2 min

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(9/21/22) The Fed is expected today to raise interest rates by 75-basis points, but the real headline will come from the statement that's issued after the meeting is over: Will Jerome Powell reiterate his hawkish claims from Jackson Hole, or will he backpedal? That news will drive markets into the afternoon. As the Fed continues its rate hike campaign, Treasuries are responding in kind, and at this point, Bonds are cheaper relative to stocks. (A history of rate hikes is given here.) As rates rise, there is a shift from risk (assets) into less-risky instruments (bonds). Hosted by RIA Advisors' Chief Investment Strategist, Lance Roberts, CIO Produced by Brent Clanton -------- Get more info & commentary: https://realinvestmentadvice.com/insights/real-investment-daily/ ------- Watch the video version of this report by subscribing to our YouTube channel: https://www.youtube.com/watch?v=5QUp-riVZOI&list=PLVT8LcWPeAujOhIFDH3jRhuLDpscQaq16&index=1 ------- Visit our Site: www.realinvestmentadvice.com Contact Us: 1-855-RIA-PLAN -------- Subscribe to RIA Pro: https://riapro.net/home -------- Connect with us on social: https://twitter.com/RealInvAdvice https://twitter.com/LanceRoberts https://www.facebook.com/RealInvestmentAdvice/ https://www.linkedin.com/in/realinvestmentadvice/ #InvestingAdvice #FederalReserve #FOMCMeeting #JeromePowell #JuffGundlach #InterestRateHikes #Inflation #SlowerEconomicGrowth #Markets #Money #Investing

Previous Episode

Why Jerome Powell is Okay with "Below Trend" Growth (9/20/22)

(9/20/22) It's turning into a sloppy September for markets, even though support held at May's lows on Monday. Today marks the start of the FOMC meeting, with markets anticipating the group's next move upward on rates by 75bp. Why is Jerome Powell okay with "below trend" economic growth? The trap of investors' "anchoring;" the Fed's view of markets is the only one that counts. Some economic pain is okay...the Fed is going to act in a way that is not friendly to markets. Why the Fed might NOT cut rates; the Fed's actions and chain of events; does the Buffett Indictor indicate a coming market crash? Buy My House (Shark Tank for Real Estate); why Open Door is losing money; this is how you know you're at the top of a market. Zillow's iBuying is geared for volume selling, not profitable deals. Why you really DON'T have to own a house. SEG-1: Sloppy September & Markets' Expectations SEG-2: Why Jerome Powell is Okay with "Below Trend Growth" SEG-3: Is The Buffett Indicator Predicting a Market Crash? SEG-4: How You Know You're at the Top of a Market (Real Estate) Hosted by RIA Advisors Chief Investment Strategist Lance Roberts, CIO Produced by Brent Clanton, Executive Producer -------- Watch today's show on our YouTube channel: https://www.youtube.com/watch?v=2_eE2iVEa8Q&list=PLVT8LcWPeAugpcGzM8hHyEP11lE87RYPe&index=1&t=2683s -------- Our Latest "Three Minutes on Markets & Money: Will Rates Reach 4%?" is here: https://www.youtube.com/watch?v=50DsLuo5gv8&list=PLVT8LcWPeAujOhIFDH3jRhuLDpscQaq16&index=1&t=3s -------- Our previous show is here: "Is a 75bp Rate Increase Already Baked-in?" https://www.youtube.com/watch?v=Ok76LzsOFTw&list=PLVT8LcWPeAugpcGzM8hHyEP11lE87RYPe&index=1&t=3s -------- Get more info & commentary: https://realinvestmentadvice.com/newsletter/ -------- SUBSCRIBE to The Real Investment Show here: http://www.youtube.com/c/TheRealInvestmentShow -------- Visit our Site: www.realinvestmentadvice.com Contact Us: 1-855-RIA-PLAN -------- Subscribe to RIA Pro: https://riapro.net/home -------- Connect with us on social: https://twitter.com/RealInvAdvice https://twitter.com/LanceRoberts https://www.facebook.com/RealInvestmentAdvice/ https://www.linkedin.com/in/realinvestmentadvice/ #InvestingAdvice #FOMC #InterestRateHike #JeromePowell #EconomicPain #BelowTrendEconomicGrowth #Inflation #Markets #Money #Investing

Next Episode

Higher Rates are Here to Stay Until 2023 (/22/22)

(9/22/22) The Fed jacked rates up 75-basis points, as expected, and held out the possibility of at least two more rate hikes this year. The thing that shocked markets was the implication by Jerome Powell that higher rates would be here to stay throughout 2023, barring a recession or credit-related event that might cause the Fed to reverse policy. Markets in response sold off, taking out lows established back in May, an important support level we've been watching. As sentiment sours, and markets sell-off, conditions are ripening for a counter-trend rally. The 20-MDA has crossed over the 50-DMA, so any rally back towards 4,000 on the S&P would appear to be a good exit point for investors to trim risk and raise cash. Hosted by RIA Advisors' Chief Investment Strategist, Lance Roberts, CIO Produced by Brent Clanton -------- Get more info & commentary: https://realinvestmentadvice.com/insights/real-investment-daily/ ------- Watch the video version of this report by subscribing to our YouTube channel: https://www.youtube.com/watch?v=EWe17gAeUgk&list=PLVT8LcWPeAujOhIFDH3jRhuLDpscQaq16&index=1 ------- Visit our Site: www.realinvestmentadvice.com Contact Us: 1-855-RIA-PLAN -------- Subscribe to RIA Pro: https://riapro.net/home -------- Connect with us on social: https://twitter.com/RealInvAdvice https://twitter.com/LanceRoberts https://www.facebook.com/RealInvestmentAdvice/ https://www.linkedin.com/in/realinvestmentadvice/ #InvestingAdvice #FederalReserve #FOMCMeeting #JeromePowell #InterestRateHikes #Inflation #Markets #Money #Investing