Stocks and bonds both get clobbered this time. Here's what's behind the double whammy

by Chris Arnold

David R. Kotok quoted in excerpt below:


David R. Kotok - In the News


In normal times, when worries about a recession pushes down stocks, the Federal Reserve would cut interest rates to boost the economy. That also has the effect of pushing up bond prices. But that's not happening now.

"This is one of those rare years when both bonds and stocks work against the investor," says David Kotok, chief investment officer at Cumberland Advisors.

"This time, the Federal Reserve has a different problem," Kotok says. The worst inflation in 40 years is threatening to become embedded in the fabric of the economy. So instead of cutting interest rates, the Fed is trying to fight inflation by raising interest rates a lot to slow the economy.

Read or listen to the full article at Georgia Public Broadcasting website:

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David R. Kotok
Published Date
News Source
Georgia Public Broadcasting