Published on 10 Aug 2023 on Zacks via Yahoo Finance

3 Long-Short Funds to Navigate Turbulent Times

Volatility continues on Wall Street due to various unwelcoming domestic banking and global news. The downgrade of several U.S. banks by Moody’s has sparked fear among investors. Also, the unexpected slowdown of the Chinese economy poses a threat, suggesting a global slowdown.

Amid all these, investors are keenly waiting for July’s Consumer Price Index data to be released later today. The street expected the inflation numbers to be 3.3% over the past year, slightly higher than June’s 3% annual gain. Higher than Fed expectation of 2% inflation and an already tight labor market suggest further rate hikes are also a possibility. Such moves could negatively impact the health of U.S. banking and the economy.

The hawkish monetary policy stance adopted by the Federal Reserve to counter inflation has pushed borrowing costs to decades higher, resulting in a slowdown in loan demand for businesses and consumers. Investors witnessed the collapse of Silicon Valley and Signature Bank earlier this year, forcing the Federal agencies to take emergency measures to boost confidence.