Broker Check


July 24, 2023

I’m known to say, “the bond market controls the stock market”.  It’s another way of saying, because the current policy makers have unleashed uncontrolled spending, debt, and the resulting inflation, we’re forced to look to the lone organization that’s trying to put the clamps on the problem, -the Federal Reserve (meeting this week).  They have one tool in their toolbox, -raising rates. The questions are, will they raise rates this week? And will this be the last rate raise for a while?  The answers: “Yes” (the raise is baked in) and “Who Knows?” -respectively.

 Since the beginning of July, the benchmark 10yr Treasury has risen 6 times for a gain of .39% an increase in yield of 10% and decreased 8 times for a decrease of .39%, -back to where we started!  Direction?

 In my opinion, the Fed can raise rates all they want, but until the policy makers take their boot off the neck of the economy, the Fed’s 2.0% target rate of inflation is simply a wish!

The views stated in this letter are not necessarily the opinion of Cetera Advisor Networks LLC. Due to volatility within the markets mentioned, opinions are subject to change without notice. Information is based on sources believed to be reliable; however, their accuracy or completeness cannot be guaranteed.