Don’t Forget This Week
If you take anything away from this week's market developments, let it be this: Central banks are well aware that their many critics are keen to lambast monetary policymakers for failing to finish the job on inflation.
Over and over again since the onset of coordinated global rate hikes, officials have insisted on their steadfast commitment to restoring price stability across the developed world. In short: Detractors doubt their resolve.
I don't so much doubt their fortitude as I do their capa
It was a different market in the rate hike cycle between 2004 to 2006 when Ben Bernanke raised rates 17 straight times. At the time I couldn’t believe it. But it happened. And if circumstances call for modest increases to cool down the markets, it ought to be done.
Plenty of people are betting on an upswing later this year, including me. But I’m afraid the market still needs to find a bottom, and it’s not satisfied by the modest gravity weighing on its breadth at the moment, despite greedllation, China’s stumbling, the war, and the wishes of many investors.
I remember when Volcker went to nearly 20%; I was just signing up for my third near 10% mortgage in a ten year period. That period that Wilson pointed to (1960s-early 1980s) for the youngsters who missed it or forgot, 2/9/66, Dow hits 995 at the close and the next time that happened was 11/10/82. That’s 16 years of stone dead money.