Home Logon FTA Investment Managers Blog Subscribe About Us Contact Us

Search by Ticker, Keyword or CUSIP       
Blog Home

  Alternatives Update 3rd Quarter 2022
Posted Under: Alternatives

There was no shortage of market events to dwell upon for investors in the third quarter of 2022. Risk assets staged a furious rally through the middle of August only to experience an equally furious drawdown giving back all gains and then some. Economic data was mostly benign, inflation remained stubbornly high, bond yields soared, central banks reaffirmed they are in inflation killing mode, mortgage rates hit 7%, high-yield spreads remained wide, the dollar rocketed, commodities pulled back, the correlation between stocks and bonds pushed deep into positive territory and the war/energy crisis in Europe dragged on. 
There have been growing concerns that years of zero/negative interest rates, and massive liquidity injections by central banks have not only stoked inflation but made the global financial system weaker, not stronger. These concerns received some supporting evidence in the third quarter. The Bank of Japan (BOJ) intervened to buy YEN, the first time since 1998, to defend against a strengthening dollar. The Bank of England (BOE) had to intervene and buy gilts in “whatever scale is necessary” as a pension crisis and pound crisis began to unfold and threaten UK financial stability. In the BOE’s words, they sought to combat “unwarranted tightening of financing conditions and a reduction of the flow of credit to the real economy”. Like much of the developed world, both Japan and England are battling rising inflation but slowing economies. These two episodes might be localized in nature, or they may portend similar challenges to come for the global financial community. 

To view the entire article, click here.

Posted on Monday, October 17, 2022 @ 8:36 AM • Post Link Print this post Printer Friendly

These posts were prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.
Search Posts
Dave McGarel
CIO, COO | Bio
  1. Market Minute
Bill Housey
Senior Portfolio Manager | Bio
  1. Income Insights
Ryan Issakainen
ETF Strategist | Bio
  1. ETF Data Watch
  2. ETF Observations
  3. Inside First Trust ETFs
  4. First Trust ROI Podcast
Jeff Margolin
Closed-End Fund Analyst | Bio
  1. Closed-End Fund Quarterly Commentary
Client Resource Kits
  1. Alternatives
  2. Equity
  3. Fixed-Income
  4. Markets In Perspective
  5. Investment Themes
Other Newsletters
  1. Alternatives Update
  2. Housing Tracker
  3. Commercial Real Estate Tracker
  4. Equity Newsletter
  5. Weekly Market Commentary
  6. Weekly Market Watch
Subscribe To Receive Email

Asset Flows Monitor October 2022 Edition
Asset Flows Monitor September 2022 Edition
First Trust Energy Sector ETF Primer
Short-Term Weakness may Provide an Attractive Entry Point for Investors in Energy ETFs
Asset Flows Monitor August 2022 Edition
Alternatives Update 2nd Quarter 2022
Closed-End Fund Second Quarter 2022 Review
Asset Flows Monitor July 2022 Edition
Asset Flows Monitor June 2022 Edition
Heightened Volatility Yields a Resurgence for Dividend ETFs
Skip Navigation Links.
Search by Topic
Skip Navigation Links.

The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. By providing this information, First Trust is not undertaking to give advice in any fiduciary capacity within the meaning of ERISA, the Internal Revenue Code or any other regulatory framework. Financial professionals are responsible for evaluating investment risks independently and for exercising independent judgment in determining whether investments are appropriate for their clients.
Follow First Trust:  
First Trust Portfolios L.P.  Member SIPC and FINRA. (Form CRS)   •  First Trust Advisors L.P. (Form CRS)
Home |  Important Legal Information |  Privacy Policy |  California Privacy Policy |  Business Continuity Plan |  FINRA BrokerCheck
Copyright © 2024 All rights reserved.