Did The Biggest Bond Bull Just Start To Worry?
We read lots of research, both on and off Wall Street. One of the best and most interesting writers about bonds, interest rates and Fed policy is Lacy Hunt at Hoisington Investment Management Company. For years he correctly forecast lower rates and moderate inflation, providing soothing words when CPI would rise and the Fed talked tough. The Hoisington message is changing:
"These and many other harbingers of recession constitute a favorable environment for long-term bond investors. However, should the Federal Reserve cease in their efforts to calm inflation before it has been fully restrained, bond investors should be wary."
I don't know which is a worse situation for the economy: runaway inflation that the Fed can't control, or a Fed that is uninterested in controlling it.
Here is the full note. It is worth a read.
Chief Investment Officer
Lloyds Intrepid Wealth Management
Lloyds Intrepid LLC is doing business as Lloyds Intrepid Wealth Management. Lloyds Intrepid LLC offers investment advisory services in the State of Texas where registered and in other jurisdictions where exempted. Registration does not imply a certain level of skill or training. Lloyds Intrepid LLC and its advisers do not provide legal, tax or accounting advice. Lloyds Intrepid LLC formulates retirement plans, investment strategies, portfolio construction and investment due diligence for clients with signed investment advisory agreements with us. The information contained herein has been obtained from sources believed to be reliable, but the accuracy of the information cannot be guaranteed. All opinions and outlooks are subject to change.
© 2022 Lloyds Intrepid LLC