|Liz Ann Sonders, Jeffrey Kleintop, Brad Sorensen – Charles Schwab
Volatility… It’s Back!
Summary: Volatility came back with a vengeance last week but the recent pullback is looking more like a pause in the bull market rather than a hard stop. Rising rates were a precipitating factor in triggering the selloff. The Schwab team expects rates to continue rising, but the spikes that were seen in inflation and rates last week are unlikely to be the norm this year. The biggest risk going forward may be excessive expectations. The economy is strong, but rosy projections may not be met which is sure to add more volatility to the markets.