Financial conditions continue to deteriorate as uncertainty and volatility creep back into the equity, bond and money markets. … READ MORE >
RSM US Financial Conditions Index
Volatility in markets: Hedging risk in an era of growing uncertainty
It is clear that volatility in interest rates, bond yields and foreign exchange markets will accelerate and that firms will need to consider ways to hedge that volatility. … READ MORE >
To understand rising rates and volatility, look to regime change in global economy
Gone is the era of low inflation, low interest rates, a global savings glut and sagging aggregate demand. In its place is a new framework featuring scarce capital, insufficient aggregate supply, higher inflation and higher interest rates. … READ MORE >
Morning market minute: Regime change and financial conditions
Secular stagnation that for years featured low inflation, low interest rates and plentiful capital has been replaced by competition for capital, higher inflation and higher interest rates. … READ MORE >
Financial conditions improve in Canada and U.S., setting stage for growth
Financial conditions continue to improve both in Canada as well as the United States, signaling stability in markets and setting the groundwork for economic growth. … READ MORE >
U.S. financial conditions update: A shift in structure and a new center of gravity
The RSM US Financial Conditions Index turned positive in January and has centered at 0,25 standard deviations above zero since March, indicating the normal level of risk priced into financial securities. … READ MORE >
How real is the wealth effect in a bull market?
Using a back-of-the-envelope calculation, we estimate that the sharp rebound in equities last year contributed to an increase of roughly $900 billion in households’ stock wealth, or $288 billion in consumer spending. … READ MORE >
Financial conditions turn positive amid economic resilience
For the first time since February 2022, the RSM US Financial Conditions Index has turned positive amid a robust economy, strong labor market, easing inflation and rising real wages. … READ MORE >
Rate normalization and the return of risk
Conditions are ripe for the yield curve to continue to normalize as the long end moves to a range between 4% and 4.25%. … READ MORE >
RSM US Financial Conditions Index moving toward neutral
With the money market at normal levels of risk, and with surging equities balancing out the caution displayed in the bond market, our composite financial conditions market is fast approaching neutral. … READ MORE >