But if valuations had been rising in the previous year, the S&P 500 has historically performed much worse following
the start of a tightening cycle.
Regardless of the period, 3 - month returns following the start of a period of steady tightening were on average negative and more volatile, as markets initially reacted negatively to
the start of a tightening cycle.
Although the US currency typically weakens at
the start of a tightening cycle, Morgan Stanley is forecasting a stronger greenback against all major currencies through 2017.
7) I've sometimes commented that at
the start of a tightening cycle that those who have been cheating blow up, like Third Avenue Focused Credit, which bought assets far less liquid than the shares of its mutual fund.
Not exact matches
«Remember, Fed
tightening cycles start off benign but 10
of the 13 in the post-WWII era have ended in tears.»
«Having learned its lesson, the Fed is trying to convince markets that getting off zero is not necessarily the
start of a traditional policy
tightening cycle,» says Zentner.
In the U.S., I believe large - cap, cyclical - oriented companies look to be in a good position to withstand the
start of the Fed's
tightening cycle.
The inflationary impacts
of our monetary policy continue to radiate out, and will continue to, until the Fed
starts its next
tightening cycle.
Fed
tightening cycles often
start with a small explosion where short - dated financing for thinly capitalized speculators evaporates, because
of the anticipation
of higher financing rates.
They can engage in fancy strategies where they try to remove policy accommodation either through rates or the size
of the balance sheet, but one thing Fed history teaches us is that the Fed doesn't know what will happen when a
tightening cycle starts, but usually it ends with a bang — some market blowing up.
In the U.S., I believe large - cap, cyclical - oriented companies look to be in a good position to withstand the
start of the Fed's
tightening cycle.
As I have said before, when the FOMC
tightens without thinking about the financial economy, they keep
tightening until something blows up, and then they loosen too much,
starting the next
cycle of over-borrowing.
In our current stage
of the commercial real estate
cycle, most conventional lenders, including banks, life insurance companies and CMBS providers, have
started to
tighten their minimum requirements and capping what they are willing to provide.