In the May issue of our monthly flagship publication, we feature:On the Record by Chief Investment Officer Tony Roth explains that, after an extraordinarily volatile and disappointing stock market in April, we analyze the current economic and market forces at play and set our sights on May and beyond. First, we take an in-depth look at inflation expectations and supply-demand shifts against a dicey backdrop that includes a cloudy supply-chain outlook and COVID outbreaks anew in China.
May 4—With a volatile equity market, inflation at eyewatering highs, and the Fed signaling a fairly aggressive rate hike calendar, income- and yield-thirsty investors are heating up the bond market. How has inflation affected bond yields, and what is the market anticipating moving forward? Chief Investment Officer Tony Roth and Wilmington Trust’s Head of Fixed Income Manager Research Tom Pierce address these timely questions.
May 2, 2022—Inflation risk is to the downside for the first time in more than a year and the Federal Reserve (Fed) is likely to hike less than the current market pricing of 10 more hikes (+2.5%) this year. Price pressures were already set to ebb of their own accord even before the Fed set out on a path to tighten financial conditions. The Fed has only hiked once, by 0.