Categories: Family Office, Financial NewsPublished On: April 5th, 2022Comments Off on Market Update18 min read
admin
SHARE
On Monday, Federal Reserve Chairman Jerome Powell mentioned that if needed, it is possible to accelerate the pace of interest rate hikes to control inflation. Such aggressive remarks have had a negative impact on the stock market and led to a rapid rise in bond rates.
Even if 10-2 Year Treasury Yield Spread reverses, recessions can take quite a long time to begin. Based on the previous six recessions since 1980, recessions occurred in 6 to 34 months after the reversal, with an average of 18 months.
U.S. stocks have had positive returns in the following 12 months after a reversal. Historical data shows that all the major indexes (S&P 500, DJIA, Nasdaq, and Russell 2000) had a return of at least 8-10%. Tech stocks also had positive returns, but slightly underperformed other sectors.
We previously emphasized that the market low of 2/24 is a strong support, and a rebound can be expected in the next two weeks to one month. Take S&P 500 as an example: the rebound may begin to slow around 4550, and then further observation is needed to see if there is a chance for a continued rise, or a reversal to test the previous low.
Based on risk diversification and the overall view of the market, investors with excessive shareholding should take this opportunity to adjust into more defensive investments.
All images are copyright to their respective owners and are protected under international copyright laws and are protected under international copyright laws.
Disclosure TransGlobal Advisory, LLC is a Registered Investment Adviser. This platform is solely for informational purposes. Advisory services are only offered to clients or prospective clients where TransGlobal Advisory, LLC and its representatives are properly licensed or exempt from licensure. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by TransGlobal Advisory, LLC unless a client service agreement is in place. “Likes” are not intended to be endorsements of our firm, our advisors or our services. Please be aware that while we monitor comments and “likes” left on this page, we do not endorse or necessarily share the same opinions expressed by site users. While we appreciate your comments and feedback please be aware that any form of testimony from current or past clients about their experience with our firm is strictly forbidden under current securities laws. Please honor our request to limit your posts to industry-related educational information and comments. Third-party rankings and recognitions are no guarantee of future investment success and do not ensure that a client or prospective client will experience a higher level of performance or results. These ratings should not be construed as an endorsement of the advisor by any client nor are they representative of any one client’s evaluation. TransGlobal Advisory, LLC is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and, unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance. TransGlobal Advisory, LLC may discuss and display, charts, graphs, formulas which are not intended to be used by themselves to determine which securities to buy or sell, or when to buy or sell them. Such charts and graphs offer limited information and should not be used on their own to make investment decisions.
