Market insights and analysis

How dynamic, risk-managed investment solutions are performing in the current market environment

2nd Quarter | 2022

Market insights and analysis

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Updates on how dynamic, risk-managed investment solutions are performing in the current market environment.

Last week, gold prices continued to trend upward after finding support at their 50-day and 200-day moving averages. They closed the week at $1,831.80 per ounce.

Recent market commentary from RealInvestmentAdvice.com states, “Over the past few weeks, Fed speakers are bemoaning inflation and voiced their wishes to squash it. They frequently mention how effective their monetary toolbox is in managing inflation. …

“Within this ambiguity comes an abundance of risk for investors. If the Fed walks the walk and fights inflation vigorously, markets appear ill-prepared for a sharp decline in liquidity and resulting market instability. Conversely, the Fed may be just talking the talk and hoping inflation starts abating soon. In such a circumstance, they may not be as forceful as they appear.

“The Fed is walking a tightrope between instability and inflation. Can they successfully tame inflation without causing severe market dislocations? The tightrope is thin, and the consequences of falling off to one side or the other are severe.”

If the Federal Reserve falls off this tightrope, it will likely bring down the U.S. dollar with it. Investors may want to consider attaching a “golden parachute” to their investment portfolios as a hedge.

Rick Andrews is president of Avant Capital Management.



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