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75 basis points: the biggest rate hike by the Federal Reserve since 1994 with additional aggressive moves expected. It looks like Fed Chair Jerome Powell is proving the naysayers wrong, who doubted he had the stuff to fight inflation. As influential Fed watcher Paul McCulley told WEALTHTRACK months ago Powell will \u201cdo whatever it takes\u201d to fight inflation, just like Paul Volcker did in 1979/1980. Volcker succeeded, setting up conditions for the great bond bull market of the last 40 years but caused a serious recession to do it.

How do you manage through a cycle of rising interest rates and higher inflation? There aren't too many money managers who have that experience and have a track record of excellence through many different types of markets. This week\u2019s guest does. She is Mary Ellen Stanek, Co-Chief Investment Officer of Baird Advisors.

Stanek was recently named Morningstar\u2019s Outstanding Portfolio Manager of 2022 for her \u201cdisciplined and risk-aware approach, thoughtfully navigating various market environments,... and generating impressive absolute and risk-adjusted returns\u201d in her 22 years at Baird. 

I interviewed Stanek a few days before the Fed meeting but she was prepared for it. We talked about the need for the Fed to get more aggressive in word and deed - which they did, where we are in the interest rate cycle - early days yet, and why she says \u201cbonds are back!\u201d 

WEALTHTRACK #1851 broadcast on Jun 17, 2022

More info: https://wealthtrack.com/morningstars-outstanding-portfolio-manager-of-2022-mary-ellen-stanek-says-bonds-are-back/

Related:

Investment legend Jeremy Grantham is known for his prescient forecasts of some major turning points in the markets over the years including his \u201cepic bubble\u201d characterization last year. He elaborated on the theme on WealthTrack saying that not only was the stock market trading in the stratosphere but so were the housing, commodity, and bond markets, the latter being the biggest bubble of them all.  

https://www.youtube.com/watch?v=c13O6Amn1lQ

Paul McCulley on Fed Rates: https://youtu.be/Z0KSdIOkcxw