MarketWatch/Barbara Kollmeyer/2-22-2022
“‘Russia-Ukraine tension is a low earnings risk for U.S. corporates, but an energy price shock amid an aggressive central bank pivot focused on inflation could further dampen investor sentiment and growth outlook,’ said strategists led by Dubravko Lakos-Bujas, in an early Tuesday note. Amid an uncertain and potentially rocky path of this current crisis, with possibly higher market volume, ‘tightening monetary policy, in our view, still remains the key risk for equities as central banks attempt to aggressively re-anchor inflation expectations lower,’ said the JPMorgan team.”
USAGOLD note: It’s the Fed, stupid (not Ukraine) …… Sooner or later, however, the markets will need to factor in the difference between raising rates and raising the real rate of return. They are not the same thing.
