The S&P 500 index recorded another all-time high as the accommodative monetary policy from the Federal Reserve helps the post-pandemic economic recovery gain traction. Although stocks have been one of the primary beneficiaries, the combination of Fed liquidity and the economic re-opening is causing inflation to rise. For example, crude oil prices were roughly $75.50 a barrel at the end of June, up from around $48.50 at year-end. As a result, interest rates on 10-year U.S. Treasury securities, which were trading at a yield of 0.93 percent at the end of December, were recently yielding 1.45 percent.
TJT Capital Group’s InVEST Risk Model ® has helped our clients participate in bull markets and protect capital from the devastation of bear markets by focusing on 5 indicators that really matter when it comes to determining the health and direction of markets. The following is the most recent update.