Low rates are great. However we have argued multiple times, low rates too long can cause more damage than good.
Higher rates … increasing moderately, NOT super fast is the perfect scenario.
10 Year Rate Peek
Over the short term, the much watched 10 Year Treasury Rate looks like it is on a tear… maybe even moving too fast …

While we peek at the short term, turning points are more important over the LONG term ..
Here is a longer term chart …

The white line on this chart is what is called a trend line. Many call this stuff VooDoo … Let’s liken this to momentum in a sporting event… hard to define, but certainly existent.
Keep an eye on the far right corner of this chart … if it continues, then we may be headed for a sustainable period of longer term rates … Good if it occurs slowly.
Have a Great “Higher Rates” Day!
John A. Kvale CFA, CFP
