Central Markets by Robert Lloyd, CFA

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.

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  • Robert Lloyd, CFA

Narrative Confusion!



We had an interesting Fed meeting yesterday. Their press statement talked a lot about raising rates and reducing QE, but during the follow-on press conference Fed Chairman Powell talked about how the Fed is very sensitive to market reactions to new policy.


Here is my interpretation of various reactions to the Fed announcement:


Fed: We will only raise rates slowly to 2-2.5% to stop inflation.


Bond Market: OK, we are good with that.


Stock Market: Great! With inflation at 6.8%, that's even more monetary stimulus that after the Financial Crisis!


Barrons: (clears throat) Uhhh, one small problem, people.


The Fed May Have to Kill the Stock Market's Rally to Quash Inflation | Barron's (barrons.com)


The Fed is explicitly telling us they do not want to lift interest rates high enough to stop inflation. This has important portfolio implications that we will address in coming weeks.



Robert Lloyd, CFA®

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.


© 2021 Lloyds Intrepid LLC



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