Good morning and welcome to the Weekender for Saturday, July 8, 2022. For the week, US equity markets, as measured by the S&P 500, were higher by 1.9%. In general, it was a week characterized by the re-emergence of a risk-on mentality. The positive side of the recession, lower rates in the future, was the dominant narrative driving the positive week. More broadly, 2022’s equity and bond market declines are being driven by a surge in interest rates as central banks around the world take a whack at the worst inflation in forty years. But if inflation comes in line, the Fed will need to shift its stance from contraction to accommodation fairly quickly. This perspective drove the market higher this week.