(5/25/22) Bonds have started to turn a corner in recent weeks, picking up their non-correlation relative to equity prices--exactly what you want if you're using bonds as a hedge against a stock sell-off. Taking a look at interest rates for hints of where rates are heading reveals much about the economy, and where it's heading, as well. As slowing in April of the rate of growth of inflation allowed interest rates to rise, so did May's reports of slowing inflationary growth, causing rates to drop. Interest rates are now sitting on critical support, and if the decline continues, we're expecting a break of about 2.7% on the Ten-year Treasury rate...pushing rates into the 2%-ish range. The significance of this is, stocks and bonds are starting to price-in slower growth, rather than higher inflationary pressures. So what to do about a very large short-position in Bonds? There's a good possibility of lower rates and higher bond pries through the month of June. Hosted by RIA Advisors' Chief Investment Strategist, Lance Roberts, CIO Produced by Brent Clanton -------- Get more info & commentary: https://realinvestmentadvice.com/insights/real-investment-daily/ -------- 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/RealInvestmentAdvice/ https://www.linkedin.com/in/realinvestmentadvice/ #Bonds #EconomicGrowth #InterestRates #TenYearTreasury #Markets #Money #Investing |
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