A Year of Risk and its only February
It is very hard to put in perspective, how fast rates have risen since the first of the year; In my career, rates have never moved this quickly.
The confusion over inflation is amplified by the media. While prices seem are rising, the shock is rising faster. The question is,"Is Inflation Bad for Stocks:"
We could argue both sides of this question. Yes, as rates rise the cost of buybacks, many of which are funded by debt will rise. Conversely, companies have pricing power, so it is a tug of war
With the S&P at 4419 we are adding to our SPY and QQQ positions. The bond market is not trading well, so we are bidding on bonds carefully behind 3% in A credits or better