2 Question Tuesday – 07/02/2024 – After The Debate, Should The Market Be Pricing In Higher Inflation & Should We Be Worried The S&P 500 Hasn’t Had A 2% Sell-Off In A Year?

Welcome to 2 Question Tuesday. This week’s client submitted questions were:

  1. After the debate, should the market be pricing in higher inflation?
  2. Should we be worried the S&P 500 hasn’t had a 2% sell-off in a year?

Phil, Mike, and Larry discuss Barclays’ new strategy to buy inflation hedges in the U.S. Treasury market in the wake of the Presidential Debate and the idea that Trump may win the presidency and cause inflation to rise. They then talk about how the S&P 500 has gone 387 days without a 2% sell-off, which is the longest stretch since the financial crisis, according to FactSet. And it’s come with conspicuously little volatility. The CBOE Volatility Index (VIX), the de facto fear gauge on Wall Street, in May hit its lowest level going back to November 2020 and it continues to trade near historically low levels.

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Host Lawrence Carrel’s books available available at Amazon.com