Bulls Starved in August Amid Broadest Cross-Asset Drop Since ‘81
- Commodities join rout as Fed amps up battle against inflation
- Financial conditions are tightening at an unusually fast pace
This article is for subscribers only.
Investors went hungry in August, denied by Jerome Powell’s Federal Reserve of opportunities to profit like no other month in four decades.
From stocks to bonds and commodities, every major asset slid. The least-atrocious return was a 1.9% loss as shown in a Bloomberg index tracking high-yield corporate bonds. Worse was a 2.2% drop in Treasuries, a 3.9% decline in commodities and a 4.2% slide in the S&P 500.