Reasons to Remain Positive
The S&P 500 Total Return Index is now down roughly 15% year-to-date, with the Bloomberg US Aggregate Bond Index not far behind, down roughly 10%. The main causes of the dual equity and bond downturns have been the same all year: Inflation: The March Consumer Price Index (CPI) of +8.5% was the highest since 1981.1 Monetary policy tightening: The Federal Reserve is expected to raise the Fed Funds Rate from its current 0.8% to over 3.0% by March 2023.2…