The Fed's Anti-Inflation Campaign is Good for Bonds

(11/17/22) Markets rallied towards our target of 4,100, but failed short of the goal. We're looking for some follow-through selling this morning; a retracement towards support won't be surprising. Markets are still on a buy-signal, but getting a bit extended. The risk is in a violation of both the 20- and 50-DMA. Inflation data of late supporting this market rally, and hopes of a Fed pivot, is also helping bonds. Weakening inflation is good for bonds, dropping yields and raising prices. We're looking for a rally to about 112 to 116 on TLT. We're paying attention to what's going on in the fixed-income market: Weaker inflation, weaker economic growth, and a Fed pivot are all bond friendly, long-term. Short-term, bonds are over-bought; we're looking for higher bond prices as we move into 2023.

Hosted by RIA Advisors' Chief Investment Strategist, Lance Roberts, CIO
Produced by Brent Clanton
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