“You can see almost across the board different parts of the bond market are doing even worse than the stock market (long-term treasuries, intermediate-term treasuries, corporate bonds and total bond index funds) or just about as bad as the stock market (junk bonds and short-term treasuries).”
“Value stocks are finally shining.In fact, value stocks are outperforming across the board in this stock marker tumble:”
Wendy sounded the alarm about bond funds on METAR some time ago, these graphs sure
are ugly. And we haven’t really had the actual Fed rate hikes, although selling pressure
on bond etf’s is caused by the knowledge/rumor that hikes are coming.
Value stock funds have dropped the least, but they’ve still dropped.
Looking at all of the graphs in the linked article, cash is definitely not trash, in
relation to stock and bond funds. ( no graph of cash in article, it’d look like this
0 _________________, lol )
Here’s the graph of the USD. It’s rising rapidly (against a basket of international currencies).
This is the Risk Panel of my Control Panel. Note that stocks and Treasuries are falling, but stocks are falling more relative to Treasuries.
Wendy, $USD is a measure of the dollar versus a basket of global currency. When the Fed raises,
I believe the dollar becomes more valuable against these global currencies, cause I don’t think those countries are raising rates. That is not good for US exports. The Fed sure is between a rock and a hard place, they want to put the brakes on inflation, but they don’t want to kill US exports. Do you think the Fed will cave and stop short with the rate hikes ?
( of course, stronger dollar has more bang for the buck when buying foreign goods, so good for
US consumers )
“The U.S. Dollar Index is used to measure the value of the dollar against a basket of six foreign currencies: the euro, Swiss franc, Japanese yen, Canadian dollar, British pound, and Swedish krona.” )