MARKET UPDATE | THIRD QUARTER 2022
The U.S. Federal Reserve (Fed) hiked interest rates by 0.25% in March with additional plans to rapidly wind down its $9 trillion balance sheet. Additional rate hikes are planned for 2022 with 0.5% rate hikes on the table. U.S. and international equity markets reached correction territory during the first quarter due to various headwinds, including elevated inflation, globally synchronized central bank tightening, the Russia/Ukraine war, and supply chain bottlenecks. Bonds posted their worst quarterly return since 1980 due to a rapid rise in yields and the aforementioned headwinds. During such periods of market volatility, The Mather Group, LLC (TMG) deploys various strategies to add value, including tax loss harvesting, asset class rebalancing, and accelerated tax strategies, when appropriate.
