Our View

Despite markets at all-time highs, many investors remain cautious. To quote Milton Friedman, we’re waiting for the “long and variable lags” of monetary policy to impact the economy. In this paper, we’ll use history as a guide to understand past Federal Reserve (Fed) cycles and how they may have contributed to yield-curve inversions, recessions, and bear markets.

Important Risks: Investing involves risk, including the possible loss of principal. • Small-cap securities can have greater risks and volatility than large-cap securities. • Diversification does not ensure a profit, protect against a loss, or eliminate market risk. • For dividend-paying stocks, dividends are not guaranteed and may decrease without notice. • Different investment styles may go in and out of favor, which may cause underperformance vs. the broader stock market.

All information provided is for informational and educational purposes only and is not intended to provide investment, tax, accounting, or legal advice. As with all matters of an investment, tax, or legal nature, you and your clients should consult with a qualified tax or legal professional regarding your or your client’s specific legal or tax situation, as applicable. The preceding is not intended to be a recommendation or advice. Tax laws and regulations are complex and subject to change.

The views expressed here are those of the authors and should not be construed as investment advice. They are based on available information and are subject to change without notice. Portfolio positioning is at the discretion of the individual portfolio management teams; individual portfolio management teams, and different fund sub-advisers, may hold different views and may make different investment decisions for different clients or portfolios. This material and/or its contents are current as of the time of writing and may not be reproduced or distributed in whole or in part, for any purpose, without the express written consent of Hartford Funds.