| From the Editor's Desk
Markets haven't acted like this since 1981 -- and here's how that played out You have to go all the way back to 1981 when stocks, bonds, inflation-protected bonds and industrial metals were all slumping simultaneously.
The S&P 500 index SPX, -0.81% has retreated 18% this year, the iShares 7-10 Year Treasury Bond ETF IEF, +0.86% has dropped 10%, the iShares TIPS Bond ETF TIP, +0.54% has dropped 8%, and the Invesco DB Base Metals Fund DBB, -0.91% has eased 1%.
Then, as now, the Federal Reserve was hiking interest rates to quell inflation.
:Just like today, the world's central banks were obsessed with 'breaking the back' of inflation, which, like a monster in a horror movie, kept appearing to die before coming back with second and third winds," says Dhaval Joshi, chief strategist for BCA Research's Counterpoint. "Just like today, the central banks were desperate to repair their badly damaged credibility in managing the economy."
"And just like today, central bankers hoped that they could pilot the economy to a 'soft landing', though whether they genuinely believed that is another story," he added.
Continued here
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