Are Inflation Expectations Changing?
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For the last few months, I have tracked market performance using four key assets. Results this week produced conflicting outcomes. Do they reflect the first indication of inflation expectations changing?
The standard table is presented below. It includes data as of Oct. 21, 2022.
Data Of The Week Ended Oct. 21
| CLOSING PRICES | GAIN/LOSS | ||||
| ASSETS | 7/26/2022 | Last Week | This Week | Week | From 7/26 |
| DJIA | $31,764.00 | $29,634.83 | $31,082.56 | 4.9% | -2.1% |
| GOLD (GLD) | $160.00 | $152.98 | $154.15 | 0.8% | -3.7% |
| TECH (QQQ) | $294.30 | $260.74 | $275.42 | 5.6% | -6.4% |
| BONDS (TLT) | $116.84 | $98.57 | $93.17 | -5.5% | -20.3% |
Equity markets performed very well for the week, as shown by the DJIA and tech, but bonds continued to slide. This divergence in performance is unusual and worthy of more comment. I shall provide a deeper discussion on why this divergence might be occurring in a subsequent post.
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Disclaimer: Rankings are not recommendations. They are information which you may utilize as you see fit. more
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