The Traderszone Network

Published in TZ Latest News 24 May, 2014 by The TZ Newswire Staff

The Impact Of Inflation And The Fed On Indices And Corporate Bonds

Everyone’s talking about the Federal Reserve’s exit strategy and whether rates will increase before or after it contracts its balance sheet. A major topic is inflation, and specifically the most recent increases in the Consumer Price Index (CPI) on a year over year basis.

When listening to the chatter, remember that these increases are nothing in the context of history. Actually, the recent CPI increases benefit the S&P 500 and is very bullish for certain sectors.

read more