Stock-picking is a fun game that we all like to play. Here’s the thing: if you don’t keep an eye on the macro environment, then you don’t know which stream your stock fish are swimming in and how strong the current is. No matter where in the world you invest, your performance will be impacted by the decisions made by the Fed in the US.
Make no mistake, the Fed is always topical. In 2022, the Fed is more than just topical; it is dominating the narrative. The yield curve has a material impact on equity performance, especially in the tech sectors that investors have focused on during the pandemic.
In Episode 61 of Magic Markets, we discuss the recent moves by the Fed and what the market is expecting in 2022. We also explain a number of key concepts related to the Fed and do a bit of jargon-busting along the way.