The Balance of Risks

Wilmington Wire
Woman standing on broken tree in rain forest

May 16, 2022—Investors continue to be whipsawed by equity market volatility. The S&P 500 dropped 4.8% last week through mid-day Thursday before bouncing 4% to finish the week down just 1%. The S&P 500 has now logged six straight weeks of declines.In our client webinar last week, we explored whether the market volatility is the result of a growth scare or a prelude to a recession. On the economic side, our assessment is that inflation has peaked, and U.S.

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Investor Sentiment Collapses—Warning Sign or Opportunity?

Meghan Shue |
Wilmington Wire
Solar Lens flare light special effect on Black background

May 10, 2022—Weakness in the stock market has been acute. Over the past few weeks, there have been times when it seems that investors can’t find the exit fast enough. The CBOE Volatility Index has spiked again to around 35, indicating the options market expects heightened volatility. (The average reading on the VIX for 2021 was below 20.) But the S&P 500 index has now corrected 16.

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Inflation Risk is to the Downside and The Fed Will Need to Slow Down

Luke Tilley |
Wilmington Wire
Stock market depression concept. Digital illustration

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.

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