What History Says About Fed Hikes and Stocks

With so much attention focused on what the Fed might do at its policy meeting this week, it’s a good time to look back at history to get a sense of how stocks might respond should policymakers hike rates as the market now expects.

Dissecting Recent Bank Failures

Stock and bond market activity was materially shaken last week as Silicon Valley Bank, the California bank subsidiary of SVB Financial Group, fell into FDIC receivership.

Finally Some Income for Your Fixed Income

The unrelenting move higher in U.S. Treasury yields continued last week making it the 15th week (out of the past 16 weeks) that the yield on the 10-year U.S. Treasury security ended the week higher.

Will Rising Mortgage Rates Squash the Housing Market?

The historic spike in mortgage rates instigated chatter across the country that the housing market is a bubble that will soon pop. However, we don’t believe headwinds from higher rates will fully negate the tailwinds of low inventory, pandemic reshuffling, and positive demographics.

Ready, Set, Rate Hike

The Federal Reserve meets this week and in all likelihood will raise short-term interest rates for the first time since emergency levels of monetary accommodation were provided to markets after the COVID-19 shutdowns.