📑 Research Notes for 2022-04-25
This week, we look at the Fed's comments on a May rate hike, cash's performance relative to stocks and bonds, Israel's currency rebalances, and the current attractiveness of gold.
We conduct extensive investment research and share the most interesting content that we come across every week. Here is a curated list of this week’s top observations.
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Short Video of the Week
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Fed's Powell Says 50 bps Rate Hike “On the Table.”
(CNBC)
Federal Reserve Chairman Jerome Powell affirmed the central bank’s determination to bring down inflation and said that aggressive rate hikes are possible as soon as next month. “It is appropriate in my view to be moving a little more quickly” to raise interest rates, Powell said. “I also think there is something to be said for front-end loading any accommodation one thinks is appropriate. ... I would say 50 basis points will be on the table for the May meeting.”
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When Cash Is King.
(Compound Advisors)
Cash is king. At least for the moment. In the first quarter of 2022, short-term Treasury bills finished marginally higher (+0.03%) while both the 10-Year Treasury bond (-6.64%) and the S&P 500 (-4.95%) declined. The greatest fear among many investors is that this trend will continue.
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Israel Adds China's Yuan Allocation for the First Time While Cutting U.S. Dollar Holdings.
(Markets Insider)
Israel's central bank will add Chinese yuan while slashing its dollar and euro holdings in a move to diversify its reserve allocations and lengthen its investment horizon. Previously, the bank only held US dollars, euros, and the British pound. According to the IMF, the dollar's share of the total global currency reserves has fallen to its lowest point in over two decades.
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Gold Bulls Scent a Rally.
(Bloomberg)
With inflation surging, gold bulls are seeing a rally on the horizon for this traditional hedging asset. But are conditions conducive to a breakout?
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Last Week’s Market Performance Heatmap
(FinViz)
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Curated by Joseph Lu, CFA®
Joseph is the founder and managing director of Conscious Capital Advisors and a CFA® Charterholder.
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