Inflation and Rising Rates

 

There always seem to be frightening headlines with which equity investors must contend, the Omicron variant the latest, yet the asset class historically has generated excellent long-term returns for those that remember that the secret to success in stocks is not to get scared out of them. Easier said than done, we know, especially with the talking heads on financial television and editors of business publications competing 24/7 for attention, one day raving about the latest market rally and the next warning of impending doom.

 

These days, inflation and the Federal Reserve seem to be providing plenty of investor consternation. In this report, we examine the historical evidence for equity returns versus CPI rates, Fed Tapering and rising interest rate environments. We think readers will find the data eye-opening, plus we offer a dozen of our current Value stock favorites.