A Federal Reserve Pivot Is Not Bullish
ZeroHedge - On a long enough timeline, the survival rate for everyone drops to zero
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ZeroHedge - On a long enough timeline, the survival rate for everyone drops to zero
Stock investors wishing for the Federal Reserve to pivot may want to rethink their logic, because a swing in Fed policy can only be justified by a severe banking crisis or a recession
ZeroHedge - On a long enough timeline, the survival rate for everyone drops to zero
The Ten-year U.S. Treasury note yields 1.61%. 10-year high-quality corporate bonds yield 2.09%. The rate on a 30-year mortgage is 3.05%. Despite recent increases, interest rates are hovering near historic lows. We do not use the word “historic” lightly. By “historic,” we refer to the lowest levels since the nation’s birth in 1776. The graph below, courtesy of the Visual Capitalist, highlights our point. Despite 300-year lows in interest rates, investors are becoming anxious because they are rising. Recent history shows they should worry. A review of the past 40 years reveals sudde...