Market bets on whether the Federal Reserve’s rate hikes would lead to a recession in 2022 became a primary focus for the equity markets and for those who traded them.
Because of the Fed’s fixation with economic growth, measures of correlation among individual securities had reached their highest level since the flash crash of 2020.
The S&P 500 (NYSE: SPY) experienced intraday swings of 1% or more in 31 consecutive sessions last year, the second-longest streak in a decade, as a result of government data and bond yields.
Hedge funds jumped …
