In 2022, the Federal Reserve paused money printing for nine months, leading to a spike in inflation. Stock and bond markets suffered, with US Treasuries dropping 31%. Despite no recession, the economy and stock market behaved differently.
The stock market thrived in 2020 amid pandemic fears, boosted by the Fed’s money printing. In 2021, inflation soared, prompting the Fed to tighten in 2022. However, after nine months, the Fed reversed course due to a bond market scare in the UK.
The subsequent liquidity injection led to a new bull market, with gold and Bitcoin prices surging. Dividend growers are favored in this environment for their strong profits and trend-following appeal. For example, Amgen’s stock price closely follows its rising dividends, offering potential gains for investors.
The article emphasizes the importance of buying opportunities during market dips and staying focused on income-generating assets. Despite economic uncertainties, investing in dividend growers can provide steady returns. Remember, it’s the season of money printing, so stay alert and seize investment opportunities.