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With bond yields (and interest rates) rising sharply, it’s understandable that most of the world is hoping for lower rates.
Lower interest rates allow for more flexible lending to both businesses and consumers… BUT…
As the weekly chart below shows, the last time 2-year bond yields were this high and interest rates turned lower, it was the start of challenges for stocks (i.e. The Financial Crisis).
And currently, 2-year Treasury bond yields are testing that very same level, and the 150-week change is up 2,127%. Yikes!
Will they turn lower here? Will it be different this time? Stay tuned.
There’s a “delayed reaction” dividend play (for tax-free 5% yields) waiting for us in municipal bonds right now—and it’s not going to last. I know, I...
Turmoil in the bank industry and renewed concerns of economic headwinds are driving expectations that Federal Reserve's interest-rate hiking is at or near an end. In turn, the...
Bonds are becoming attractive as investors are flying to safety. At one point last week, the yield on a two-year Treasury note was over 5%; that caught the attention of...
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