Has inflation peaked, when can we expect a rebound? Gabe and Ryan briefly discuss their thoughts on where the market is at.
Market Trajectory for Upcoming Year
The question many clients are asking is, “Have we seen the bottom of this down market yet?”. We wish there was a black and white answer to this question. What we do know is that we think we have peaked in inflation. The fed still continues to raise rates; however, we aren’t even sure that we are in a recession. From the news and media that we see, it certainly feels like we are amidst a recession, but it takes them awhile for this information to be reported.
High interest Rates
The November 8th elections will answer some of our questions regarding whether or not this is the bottom of the market, but that doesn’t guide all of our decisions. We think that we are poised for a rebound in 2023. The story of this whole year has been inflation in interest rates to slow down the economy. How much damage is needed to fix the economy is a challenging balance to maintain. Luckily, we should be nearing the end of this storm.
Encouraging Income Rate Returns
Last but not least, interest rates being higher, we are encouraged by what fixed income rate return looks like for the next decade. Whether that be risk-free CDs and money markets, bonds, treasuries, it doesn’t matter, we are just excited for the upcoming higher yield of the next decade.