Tony Jacoby, CFA – Portfolio Manager, Shelton Capital Management, Clears the Air Regarding Fed Interest Rate Policy Terminology
For more than a year, inflation has steadily increased in the U.S. while policy makers and investment gurus on TV have been throwing around terms such as ‘transitory inflation,’ ‘supply shock’ and ‘demand crush’ like Nolan Ryan’s knuckles to the top of Robin Ventura’s head.
If you’re scratching your head at these terms and wondering what they mean for your job security or investment portfolios, you’re not alone. Policy makers are lifelong academics from the most elite universities in the world, communicating complicated and dry policy matters to insiders with decades of industry experience. The average American is excused from hanging on every word of a press conference about monetary policy when they must pick up dinner on the way home after their kids’ soccer practice.
So, what does ‘behind the curve’ mean in terms that the average American can understand?
About Shelton Capital Management
Shelton Capital Management is a multi-strategy asset manager with fund administration and digital marketing expertise. With a determined focus on growth, Shelton Capital is active in acquisitions and fund consolidations. Shelton Capital Management has expertise in mutual fund and separately managed account advisor mergers and has completed seven transactions with the goal of improving the financial and economic performance of partner firms. Shelton Capital manages over $3.2 billion of assets as of 6/30/22. For additional information, visit https://sheltoncap.com.
It is possible to lose money by investing in a fund. Past performance does not guarantee future results. Investors should consider a fund’s investment objectives, risks, charges and expenses carefully before investing. The prospectus contains this and other information about a fund. To obtain a prospectus, visit www.sheltoncap.com or call (800) 955-9988. A prospectus should be read carefully before investing. Mutual fund investing involves risk, including possible loss of principal.
Credit-related instruments typically decrease in value when interest rates increase. Concentration in a small number of issuers increases the risk that one issuer could have a large adverse impact on the Fund’s return. Borrowing and frequent trading could increase the Fund’s operating expenses. High-yield bonds involve greater risk of default, and may be more volatile and less liquid than investment grade securities. Subordinated and unsecured loans may be disproportionately affected by default and downgrade. Foreign investments may be adversely affected by currency fluctuations, lower liquidity, tax regulation, and political instability. Derivatives can be highly illiquid and difficult to unwind.
The Fund’s short positions may equal up to 100% of the Fund’s net asset value. Short sales theoretically involve unlimited loss potential since the market price of securities sold short may continuously increase.
Distributed by RFS Partners, a member of FINRA and affiliate of Shelton Capital Management.
INVESTMENTS ARE NOT FDIC INSURED OR BANK GUARANTEED AND MAY LOSE VALUE.