by Aptus PM Team | Aug 17, 2022 | Blog, Bonds
CPI Softer but Higher Unit Labor Costs (ULCs) Remain Problematic A sustained slowdown in inflation (the Fed’s clear goal) will require a sustained slowdown in economic activity — creating slack and driving down Unit Labor Cost growth. A key economic...
by JD Gardner | Aug 3, 2022 | Market Updates
The plan was to discuss valuations, but July created the opportunity to revisit two important concepts: Asset Allocation Upside and Downside Capture We wanted to touch on both and their impact to our portfolios. Asset Allocation Asset allocation is the...
by Aptus PM Team | Jul 20, 2022 | Blog, Bonds
Another Month, Another (BIG) Hike. Next Wednesday, July 27th, the Fed is expected to hike 75bps and bring their overnight target up to the FOMC’s consensus neutral rate of 2.5%. We believe that more hikes will be needed to tame inflation, which helps explain why...
by Aptus PM Team | Jul 7, 2022 | Blog, Bonds, Market Updates
The Yield Curve Inverted… Again The yield curve has inverted temporarily several times this year, but it’s only been for a day or two and then bounced back to a more normal shape (front end lower than the long end). As the Fed continues to hike rates (raising rates at...
by Aptus PM Team | May 20, 2022 | Blog, Bonds, Market Updates
* Fed Expected to Hike 50bps at Next Two Meetings. As you can see below, the odds on both are at 100%. Given the persistence of inflation, the Fed has been put into defensive mode (i.e., forcefully tightening policy) even into a growth slowdown. Source: Bianco...
