Whining & Crying Over Interest Rates

After Wednesday’s huge surge, stocks were quietly digesting on Thursday, somewhat as you would expect. With the initial blastoff from the bottom over which typically lifts all ships, especially those that were hit the hardest, it’s now time to start stalking emerging leadership. I am going to reserve judgement at this point since, frankly, I do not have strong conviction other than the transports are one sector acting very well. I want to see what the defensive groups do over the next week or so.

What I find really shocking right now is how the masses and media refuse to talk about long-term interest rates. All we heard all year was about how high rates were going and how bad it was for the economy and markets. Every stock market decline brought out whining and cries about rates.

Meanwhile. if you look below, the yield on the 10-Year Treasury Note now stands at a 10 week low. Long-term rates have been coming down, down and down. But you don’t hear that anywhere because it doesn’t fit the narrative. Wait. Just wait for it. Next week, the media and pundits will be back to worries about the flattening yield curve (short-term rates versus long-term rates) since long-term rates have fallen so much. Commence whining and crying!

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Paul Schatz, President, Heritage Capital
Paul Schatz, President, Heritage Capital
If you have at least $250,000 of investable assets and would like to schedule a complimentary meeting, call, or video conference with me, please click on my calendar here email me at Paul@investfortomorrow.com or call the office directly at 203.389.3553.

Comments

  1. Marc J Mosqueda says:

    My focus now as a currency pair trader is The Euro Dollar, Swiss Franc along with the Japanese Yen and pound dollar. Of course, I have my eye on the $VIX along with the equities market in general. This Trump presidential cycle Elliott Wave Principle is going to be a challenge for myself. The G20 summit along with this current tariff war with China and not to mention the African Swine flu epidemic will factor into my equations and trading decisions. I am trading with little or no money due to my payment to the Lake County Indiana judicial system while being an online business student at Ashford University Forbes School of Business. Who talks about macroeconomic issues while incarcerated or at a Thanksgiving dinner besides myself. I can still practice Funeral Directing and Embalming but why when I can day trade from home. Two years is a long way until presidential elections and only God knows when this tariff war will end with a threat of a government shutdown

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