Choice: A new luxury amidst the sell-off

Source: Chase — 

Market update: Breaking points

There has been one question for investors to consider this year: What would it take to break inflation?

The hope at the beginning of the year was that a combination of interest rate hikes and natural resolution of pandemic-related imbalances would conspire to cool down consumer spending, labor markets and price increases.

Even though there are some signs of progress, it hasn’t been convincing to central banks. Last week, the Federal Reserve reiterated its commitment to not only aggressively hiking rates but also to keeping rates elevated until they can declare victory.

During most hiking cycles, weak links emerge. Now, we are starting to see more and more of them piling up.