6/6/2023 ‘In like a Lion and Out with a Lamb….?’
AUTHOR: TOWNEWEALTHMANAGEMENT.NET/BLOG 6/6/2023: Towne Wealth Management BLOG:
‘In like a Lion and Out with a Lamb….?’
December 19, 1980 marked the date of the highest prime rate in U.S. history, hitting an amazing 21.5%, according to a 10/7/2020 report by Robinhood. In contrast, March 16, 2020, showed the lowest prime rate of all time at 3.25%. To make 1980 sound even more egregious, though, the inflation rate hit 14.6% in March and April of 1980, according to CNN 1/12/2022. Yet, after ending 32 consecutive Fed Fund rate increases documented in a Federal Reserve report 8/29/2019, the S&P 500 index responded with an amazing 31.74% increase by years end in 1980.
And now we have…
Our current extended period of increasing Fed Funds Rates ending…
With….
Our present extended period of higher inflation subsiding…
Will this period of time become like Marches’ Weather moniker….
‘In like a Lion and Out with a Lamb….?’
Meaning, like 1980, will the markets respond with a big upward surge…?
Let us hope so…
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The opinions expressed in this material do not necessarily reflect the views of LPL Financial and based on the political content of this material are for general information only and are not intended to provide specific advice or recommendations for any individual. The economic forecasts set forth in this material may not develop as predicted. All indices are unmanaged and may not be invested into directly.
Russell E. Towne, LPL Financial Advisor, is a registered representative with and Securities and Advisory Services offered through LPL Financial, a Registered Investment Advisor. Member FINRA/SIPC.
The opinions expressed in this material do not necessarily reflect the views of LPL.