The Federal Reserve began a reversal of its Quantitative Easing (QE) program on 6.15.22 and started Quantitative Tightening. The Fed is changing from monthly purchases of $120 billion of bonds to net monthly liquidations of $95 billion. Their analysis suggests that every $1 trillion of reduction of bonds from the Fed’s $8.5 trillion balance sheet has the same impact as a .20% interest rate increase.¹

Inflation, as measured by the Consumer Price Index (CPI) was up 9.1% over the last year as of 6.30.22.  That’s the 7^th consecutive month that inflation has been reported up at least 7% on a trailing one-year basis.  Between June 1978 and February 1982, the U.S. had 45 consecutive months that inflation was reported up at least +7% on a trailing one-year basis.²

Since peaking at $5.02 a gallon on 6.14.22, the nationwide average price per gallon of gas has fallen 31 consecutive days to $4.58 a gallon as of last Friday, 7.15.22.³

Copper is often referred to as Dr. Economy.  It’s used in nearly all household appliances, automobiles and HVAC units.  The price of copper peaked at $4.92 per pound on Saturday 3.5.22 and has since fallen to $3.23 per pound as of last Thursday, 7.14.22.⁴

One out of every 10 people in the world in 2022 is at least 65 years old. A projected one out of every six people in the world in the year 2050 will be at least 65 years old.⁵

¹ The Federal Reserve

² Bureau of Labor Statistics

³ AAA

⁴ MoneyMetals.com

⁵ UN World Population Prospects

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References to markets, asset classes, and sectors are generally regarding the corresponding market index. Indexes are unmanaged statistical composites and cannot be invested into directly. Index performance is not indicative of the performance of any investment and does not reflect fees, expenses, or sales charges.

All performance referenced is historical and is no guarantee of future results.

All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy.

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