Weekend read: The Federal Reserve has a lot of volatility due to inflation, but it has already hit its target lately

The US stock market index rebounded from a heavy loss on the day the government released hot inflation numbers.

Thursday’s S&P 500 finished 2.6% higher after investors took a closer look and saw a big improvement from July to September, Rex Nutting explained.

The under-action wasn’t limited to stocks, and Rick Rieder, chief investment officer for global fixed income at BlackRock, called it “one of the craziest days” of his career.

Bond Market Warning

Some investors who focus on stocks may not realize that the bond market is much larger, and that its movements can cause government and central bank policies to shift. Larry MacDonald, founder of Bear Traps Report and author of “A Colossal Failure of Common Sense,” which described the failure of the Lehman Brothers in 2008, explained how misbehaving the UK bond market had been over the past few weeks, when it was 30 – 30 years in government bonds. Annual releases issued in December at 24 cents on the dollar. He also predicted what would happen if the Federal Reserve continued on its current path of increasing interest rates.

Related Expectations of Interest Rates:

  • Some economists believe that the Fed’s benchmark interest rate may peak above 5% after inflation data in September

  • This is how high interest rates might go up, and what might scare the Fed into switching to pivotal policy

Bullish Signs for Long-Term Stock Investors

Getty Images

Michael Brush argues that the Fed is moving too quickly to raise interest rates and calm the US economy. He predicts a rapid decline in inflation and a new bull market for stocks. In a column, he shares five sentiment indicators that suggest it’s time to buy stocks — especially this group of companies.

more: Here’s How You’ll Know Stock Market Bottoms Finally Are Here, Says Legendary Investor Who Called the 1987 Crash

Don’t forget to look at your wallet

Beth Pinsker explains how to ensure that your investments are the best diversified to suit your needs in times of uncertainty in all financial markets.

Continue reading: $22 billion in electronic bond sales can’t be wrong. Why you might want to buy it even when its price will be reset soon

Time to update your COLA if you use Social Security

Getty Images

The Social Security Administration has announced that the cost of living adjustment (COLA) for 2023 will be 8.7%, the largest increase in four decades. There’s more to the story, including the tax implications and changes to Medicare, as Jessica Hall and Alessandra Malito explain.

Related: Can I stop and restart Social Security benefits?

Pay attention to Medicare open enrollment

Getty Images / istockphoto

The annual Medicare open enrollment season runs from October 15 to December 7. The majority of Medicare beneficiaries do not review their plans each year, which can cost them a lot of money. Here’s how to handle the 2023 Medicare enrollment period.

You won’t like this ‘new normal’ for the housing market

West Coast housing markets are already seeing a drop in prices with mortgage rates at 7%.

Stephanie Reynolds/AFP/Getty Images

Freddie Mac said interest rates on 30-year mortgages averaged 6.92% on October 13, up from 3.05% a year earlier. Mortgage Daily said rates are at 7.10% – the highest in 20 years – and economists warn those levels could be the “new normal”.

A homeowner locked into a low interest rate on his mortgage loan will be reluctant to sell. Some potential buyers may now be priced out of the market due to higher loan payments. That’s what economists predict for home prices in 2023.

More housing coverage from Aarthi Swaminathan: “No housing market is immune to falling home prices”: home values ​​are already falling in these pandemic boom cities.

Tips to Maximize Financial Aid for College

Getty Images / istockphoto

When you fill out an Application for Free Federal Student Aid, or FAFSA, to help pay for your child’s college education, there may be a problem — old news. The form reflects your financial situation up to two years ago, and perhaps things have gotten worse recently. Here’s how to make sure schools have the latest information to help you get the most financial aid possible.

This is why the Florida insurance market is in chaos

It’s not just Florida insurance companies that suffer storm damage payments.

Joe Riddell / Getty Images

Hurricanes are nothing new to Florida residents, but the state’s insurance companies are losing money even though premiums have doubled over the past five years. Shahid S. Hamid, director of the Insurance Lab at Florida International University, explains why the insurance market in Florida has been distorted.

Here’s a travel option you’ve probably never heard of – home switch

Villefranche-sur-Mer on the French Riviera.

stock

A home exchange can give you a chance to live as a local in a remote location while spending much less than you would as a tourist. Here’s how it works.

Want more from MarketWatch? Subscribe to these newsletters and more, and get the latest news, personal finance and investment tips.

#Weekend #read #Federal #Reserve #lot #volatility #due #inflation #hit #target

Leave a Comment

Your email address will not be published. Required fields are marked *