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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.

  • Robert Lloyd, CFA

Tug-of-war is fun, unless you are on the losing side

The bond market remains skeptical that the current 7% inflation will be sustainable for a long period of time. After all, even in this environment, the US 10-year bond can barely get above 2%. However, we have to remember that there are non-economic players suppressing bond yields (central banks, foreign governments, and regulators).

But maybe, just maybe, that inflation will be sustainable. What might the Fed to reduce it? How high will they raise rates? How much quantitative easing might be undone? We are hearing hints of massive political pressure on the Fed to solve the "inflation" problem.

Here is a framework for thinking about more persistent inflation and the Fed's likely response.

As always, if you'd like to discuss what this means about your personal situation, you can reach me at 281-402-8284.

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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