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Stocks are faltering this year, and fixed income assets aren't offering investors much protection. Translation: It's a good time for market participants to consider alternative investments.
The Federal Reserve raised interest rates five times through the first nine months of 2022 with the most recent hike arriving earlier this month of 75 basis points.
Inflation may be easing. Maybe not. But what's not debatable is that recent readings of the Consumer Price Index (CPI) remain at multi-decade highs and are elevated enough to suggest that material declines could take a while to appear.
Rising interest rates, persistent inflation, and concern that the economy is slowing are among the factors pressuring both bonds and equities this year. One way of looking at that scenario is as an opportune time for investors to consider alternative investment strategies, including merger arbitrage.
Stocks rebounded sharply off July lows, and last month's reading of the Consumer Price Index (CPI) showed easing, albeit modest, of inflation. Those are positive points, but they don't imply that broader market volatility is dead for the remainder of 2022.
With stocks turbulent and bonds failing investors at the hands of rising interest rates, market participants may want to consider unique avenues for reducing volatility.
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Transcripts source: company-published earnings calls. Speaker attribution and formatting are processed in-app.