Flip Flop Not … What’s most important changes, frequently and fast !

If you have been following us long, you may notice we hone in on various items with sometimes excruciating  detail. Of late, interest rates may be an area you have become fatigued, but they are that important at the current time.

Not OCD, but reactive .. It changes

While it may seem at time we jump from one thing to another, we are bringing you the details of what is most important (high level as we never talk exact investments) at any given moment, in our opinion. 

Recent the CPI (consumer price index) or inflation gauge printed a hot number and caught our attention.

Here are a few cause and effects:

• Head Fake (always a possibility)
• The economy is on the mend and it is just right, Goldilocks
• Higher interests rates: Headwinds for fixed income instruments  (mortgage, corporate, Treasury)
• FOMC has to increase the taper speed and maybe increase rates at a faster pace
• Commodities and  other tangible items accelerate in value
• Pressure on Capital Markets

So while it may seem we jump around a bit, things change and importances do as well!

Have a Great Day!

John A. Kvale CFA, CFP