The month-long slide in global stocks has wiped out at least $2 trillion in wealth, leaving investors few alternatives to preserve their holdings aside from bonds and money markets. Investors have been dumping stocks, commodities and emerging market assets on growing concerns that economic growth will suffer from higher inflation and interest rates. ‘It is essentially one consistent story worldwide, starting here in the U.S. There is a fear that the Fed’s repeated commitment to limiting inflation demonstrates a willingness to risk economic activity,’ said Christopher Low, chief economist at FTN Financial in New York. Stock markets have been punished since the U.S. Federal Reserve raised interest rates for 16th time in a row on May 10 and issued a hawkish statement saying it may need to do so again to fight inflation. Investors had expected some sign of an end to the tightening cycle. Global markets have suffered since, and strategists show little agreement about how deep and how long the sell-off will go. Bonds have been the most direct beneficiary of the equities route, with benchmark U.S. 10-year Treasuries staging their longest rally of the year since mid-May. MARKETS FALL INTO THE RED […]