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Playbook for a Fed Pivot: Exploring Equity and Fixed Income Market Performance

11/21/2022

By: Adam Turnquist, CMT, Chief Technical Strategist, LPL Financial & Marc Zabicki, CFA, Chief Investment Officer, LPL Financial  

Recent inflation data has tempered expectations for future Federal Reserve tightening, including a potential peak in the terminal rate near 5.0% in May or June of 2023. While the market has welcomed this news, history suggests the path to a Fed pivot could be volatile for stocks due to elevated inflation and interest rate risk. In this week’s Weekly Market Commentary, we explore historical equity and fixed income market performance surrounding a Fed pivot, including the prospect for solid stock performance in the back half of 2023.

Read the full commentary here: weekly-market-commentary-11142022 weekly-market-commentary-11212022

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