Stocks and bonds both get clobbered this time. Here's what's behind the double whammy

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Stocks are down more than 20% this year. Usually when that happens bonds hold their value. But right now both are down sharply, hurting retirees and people saving for college in 529 plans.

A screen on the trading floor displays the Dow Jones Industrial Average at the New York Stock Exchange in September. Stocks have kept falling since then and hit their low for the year on Friday.A screen on the trading floor displays the Dow Jones Industrial Average at the New York Stock Exchange in September. Stocks have kept falling since then and hit their low for the year on Friday.

Deborah McDaniel at her home in Bremerton, Wash. She retired 2 years ago and has been watching the stocks and bonds in her retirement account fall in value.Deborah McDaniel at her home in Bremerton, Wash. She retired 2 years ago and has been watching the stocks and bonds in her retirement account fall in value.The culprit behind stocks and bonds falling at the same time: inflation.

"This time, the Federal Reserve has a different problem," Kotok says. The worst inflation in 40 years is threatening to become embedded in the fabric of the economy. So instead ofinterest rates a lot to slow the economy."The reason that bonds drop in value is that interest rates rise," says Rick Miller, an economist who runs the advisory firm Sensible Financial near Boston.When governments or companies want to borrow money, they issue bonds.

And that is exactly what happens in the bond market, where the value of the bonds you already have drops.However, if you choose not to sell them, your bonds will continue to pay you the same return on your initial investment.

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Why don’t you hold Biden accountable? You can’t?

Seems like the “inflation reduction act” is a complete bust.

The stock market has been and remains a mood ring for rich people.

Just Just lmao

I thought the grownups were in charge 🤪

Troll harder.

NPR the rag that refused to call the current economy a recession but has the gall to tell it's readers that the inflation they are suffering from hurts them... I guarantee you don't have to tell any American that he works at 9:00 to 5:00. NPR government funded ... out of touch.

Wow, corporations artificially raised prices for a quick profit and now they're stocks are suffering. Who could have called that one?

Biden spending caused record inflation and continued. Fed can only raise interest rates as a consequence

Looks like NPR is obeying its Liberal Masters and printing falsehoods about the market to place blame on others rather than the source-Biden and company. Nice try at deflection.

…it’s also made up!

LOL NPR goes from denying inflation to this.

Mostly peaceful inflation…

No duh . ..

The vast majority of Americans don’t have stocks. Stop making the stock market as some marker for Americans. It’s a propped up Ponzi scheme ruled by emotional reaction

Keep voting for Democrats

Socialist liberals have a gun in their hand and a hole in their foot and they're still trying to blame Trump.

Corporate Greed.

This is bad timing for Democrats.

“Oh no, only 400,000 of my dollars are left!”… boo fucking hoo.

Down 25% isn’t “clobbered”. Your alarmist rhetoric about our strong economy is completely irresponsible, you corporate-fascist shills. Jesus Christ.

Biden’s policies have many negative effects, we know

EdMorrissey wow … an honest tweet from NPR?

EdMorrissey Didn’t you get the memo? Joe Biden says that there is no inflation.

they're crashing the stock market so the baby boomers won't get any money from their 401k.

You get what you vote for…

But NPR was telling us all this was “transitory”. I’m confused!

Biden should spend more money.

Helpful article! Thanks NPR!

Thanks Biden

Thank you Trump for your horribly slow reaction to the pandemic and for losing your trade war with China. You negatively affected the supply chain to America and made the US a second tier trade partner of China. American farmers suffered and had to turn to socialism to survive.

USA needs 10X (at least ) of more base-load power . The more power per capita the better the living standards . Unleash American Gas , utilize clean abundant coal and build new nuclear plants in every state in the Union . RebuildAmerica NAWPA

81 Million. Sure. Ok.

Federal government spending and the globalist Federal Reserve have strangled the post pandemic economic recovery.

we're in a recession, npr, which could have been avoided w/ competent leadership.

The Biden economy is a disaster. Only fools would vote blue this fall and continue down this path.

Trumps fault. I don’t know how but I’m sure it’s trumps fault.

The stock market was just fine before Fed Chair Powell began jacking up interest rates to crash the economy and drive millions into unemployment lines.

My meager retirement fund went from $50k to $35k. Hope my corpse enjoys my retirement

Printing money for boondoggles will do that.

For all those who are new to this working from home Bitcoin trading options Here's a little tip: Get a trusted Bitcoin expert and stick to him Derrick_wright3 Invest and play at similar times each day. Because : In times of chaos, your investment is your anchor to success⚖️

The Biden economy….

thanksbiden

It's called the Biden Effect. 😕

Those that leave their money in mkts when the administration cuts fuel supply, dumps entitlements forcing historical inflation (huge interest rates coming), opens boarders, attacks opposing politicians, leaves Americans and $90B to enemies, are going to be left with very little.

This is a garbage system intended to make workers be indebted and work indefinitely.

If your signature line says retirement consultant and your clients are 60 (retiring), notify your insurance carrier. Forecasting an orchestrated sell-off of does not absolve liability, it begs the question.

Buy low liquidate high it's always easy to figure out where a low is because everyone's b******* about it. I would imagine you still want to Max out your roth for the dollar cost averaging, but if you're gonna buy individual stocks today is the sale

Young people do not have the patience for politicians who promise action on the climate crisis and fail to deliver. We need bad asses fighting for the planet's health at every level of government. This issue is too critical to get wrong.

Every article like this should point out the reality that the 1 reason we have inflation is from the price gouging from corporations. Just look at what they're reporting to Wall Street: record profits yet they keep raising prices

spending money you don't have on the inflation reduction act, bailing out college students, giving money to ukraine.....

WHCOS Here is another historic record of JoeBiden, so remember it when you vote on November

Pro tip: Even though the stock market is down, you'll still get a better return on it than if you answer Trump's fund raising email by sending him more money that you lose the moment you contribute to his grift. You're welcome 👊🏼

Mission accomplished, Joe!

I do love a good sale, picking up some things that will be real bargins looking back 5 years from now. (Sorry to those that need to withdraw funds currently though)

Let me tell you a lil secret about the stock market. There are only 2 questions and answers. 1: will the United States exist in 3 years? A: current trends and circumstances are irrelevant. 2: if the United States no longer exists? A: your money will be worthless anyway. ;)

The DOW has lost 3,000 points in only the past month. This is terrible timing for midterm Democrats.

Don't invest what you can't afford to lose or have tied up long time. I'm thankful for the opportunity to add to my portfolio at these awesome levels and I'm looking forward to everything dipping even more.

Capitalism has failed. ANOTHER WORLD IS POSSIBLE.

But no mean tweets…!!

Good. Hopefully the old folk sell their tickets to get the money back.

It’s not hurting the uber-rich who own most of this stuff, however, because they can afford to wait it out.

love how everyones future is dependent on legalized gambling

People saving for college? No.

Always remember, when people panic, “Potter’s buying, not selling”.

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