(2/8/22) Interest Rates have been inching upward out of concerns over the Fed's response to rising inflationary pressures--a normal response. But's also causing concern from investors with fixed-income holdings: what happens when dis-inflation arrives in the economy? As we begin to have slower rates of growth and diminishing rates of inflation on an annualized basis, take caution of a feedback loop into Treasury bonds. The Fed's rate hikes will also impact Treasuries as yields go up, tracking inflows of foreign capital chasing those higher yields. Remember what happened in 2017? Interestingly, sentiment on bonds--quite ebullient--have not tracked rates, and are as bearish on bonds now as it was in 2017-18. As the Fed works its interest rate alchemy, watch sentiment on Bonds shift from very bearish to quite bullish, as the flight to safety begins to take root. -------- Articles mentioned in this report: https://realinvestmentadvice.com/disinflation-is-a-bigger-threat-than-inflation/ -------- Get more info & commentary: https://realinvestmentadvice.com/news... -------- Visit our Site: www.realinvestmentadvice.com Contact Us: 1-855-RIA-PLAN -------- Subscribe to RIA Pro: https://riapro.net/home -------- Connect with us on social: https://twitter.com/RealInvAdvice https://twitter.com/LanceRoberts https://www.facebook.com/RealInvestme... https://www.linkedin.com/in/realinves... #FederalReserve #InterestRate #RateHike #FixedIncome #BearishMarket #BullishMarket #Markets #Money #Investing |
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