February Could Be Rising: Rising Omicron Cases, Inflation, Oil Prices, And Yields

February Could Be Rising: Rising Omicron Cases, Inflation, Oil Prices, And Yields

2020 has gotten off to a rocky start for the stock and bond markets because investors are anticipating the Federal Reserve will raise rates higher and maybe even faster than expected. The interest rate environment is leading to changes in how investors value stocks and what sectors they're buying and selling. While Fed Chairman Jerome Powell laid out plans to raise the overnight rate to 0. 90% by the end of the 2022, the market isn't buying it and is looking for more. The change in sentiment has investors discounting and revaluing stocks, which is leading many investors to shift allocations from growth to value, from technology to energy, from consumer discretionary to consumer staples, and from pandemic stocks to reopening stocks. However, the shifting and changing is leading to major swings in the market and increased volatility. Additionally, there are numerous risks that just aren't going away. COVID-19 lingers with its Omicron variant. Supply chains are still struggling. Inflation continues to grow at rates not seen in 40 years. The financials kicked of the new earnings season with mixed results. And the market is anticipating higher interest rates. So, what does all this mean for February? Let's breakdown these