MARKET RECAP

• US stocks fell by 1.60%, international stocks by 0.37%, and bonds by 0.21%. The spread on high-yield bonds has expanded by 65 basis points year-to-date.
• Russia continues to inch closer to a war with Ukraine. The Russians deny it, but all available intelligence suggests otherwise.
• The 10-year treasury peaked on Tuesday at 2.05%, the highest rate since July of 2019. The rate fell to 1.92% by Friday. Some are making the case that a slowing economy and a possible war with Ukraine will cause interest rates to drop.
• The debate is rising on how the Fed can get inflation under control without throwing the economy into recession. The Fed probably saved the economy from a depression when Covid hit, but went way overboard, along with Congress/Trump/Biden in pumping trillions and trillions into the system when we were well on the way to recovery. Now the Fed has to dig out of this mess.
• Mortage rates are at their highest point since January of 2020.

MARKET RECAP