Financial Conditions Are Tightening

Financial Conditions Are Tightening
A trader works inside a booth on the floor of the New York Stock Exchange (NYSE) in New York City on Nov. 8, 2021. Brendan McDermid/Reuters
Steven Van Metre
Updated:
Commentary

Retail investors continue to eagerly buy every dip or decline in stocks in hopes that stock prices will soon make new all-time highs. While they’re throwing money at stocks, they can’t see the warning signs that financial conditions are tightening. When financial conditions become too tight, risk assets tend to crash.

Steven Van Metre
Steven Van Metre
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Steven Van Metre, CFP, designs and manages unique investing strategies. He has a YouTube show where fans across the globe tune in to hear his thoughts on the global economy, monetary policy, and the markets.
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