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Bonds and the War on Inflation
As inflation continues to challenge double digits the Fed has launched an aggressive attack by raising interest rates. Decades of near-zero, zero, and negative rates globally created a “risk-on” approach to investing, allowing risk assets of all types to march upward almost uninterrupted. The pandemic and actions of global governments and central banks to add liquidity has allowed unprecedented valuations in most asset classes. However, the price for all that liquidity is now at hand — Inflation. The economic lag of the “accommodative” monetary policies took approximately 18 months and central banks are using multiple tools to achieve “full employment and price stability”. As a result bond prices have dropped sharply and rates have risen. As U.S. elections approach in November it is time to assess the impact for all corporations and individuals. Market disruptions as seen the last few months create opportunity in multiple areas if approached wisely.
For additional information and risk parameters please contact Mitch LaRocca @ 972-387-0080 or mitch@dallascommodity.com
This material has been prepared by a sales or trading employee or agent of Dallas Commodity Company and is, or is in the nature of, a solicitation. This material is not a research report prepared by Dallas Commodity Company's Research Department. By accepting this communication, you agree that you are an experienced user of the futures markets, capable of making independent trading decisions, and agree that you are not, and will not, rely solely on this communication in making trading decisions.
The risk of loss in trading commodity futures contracts can be substantial. You should therefore carefully consider whether such trading is suitable for you in light of your financial condition. You may sustain a total loss of the initial margin funds and any additional funds that you deposit with your broker to establish or maintain a position in the commodity futures market.