Broker Check

Stocks or Bonds In Control?

March 19, 2024

Last week, the 10yr-Treasury rose every day, followed by an additional increase today. 

And YES, the bond market (interest rates) is still in control. 

Investors are coming out of the ether and realizing that there may be NO interest rate decreases this year.  Last November, the Fed Chair, Jerome Powell’s happy talk about inflation’s trajectory, had the “experts” predicting SIX interest rate cuts! The “Producer Price Increase” last week verified that If 2% is the Fed’s target inflation rate, the rise in PPI indicates the inflation rate is moving away from that target. 

Result: Your properly allocated portfolio(s) probably decreased last week.