So the tag line of our blog …. Street-¢ents is Making Cents out of the Senseless markets… so lets get to it!
Oil Prices continue to hold at VERY elevated levels … we have been here before, but not usually all of the sudden ….
Note the relief moves down, followed by a ratcheting back up – our original charts were days …this is a One Month chart – Will talk about both of these points in our conclusion!
Oil costs feed into a lot more than just our vehicles….
The bond guys are pricing in a sudden increase in costs…. think CPI – Far right of the charts…. Mortgage rates and lending of all types….
Federal Reserve Bank of Cleveland as well as our main research team has the next CPI print coming in WAY OVER 3% – nearing 3.25%
Back to the bucking bronco that is Oil….
The reliefs ripple through the system in lower Economic headwinds i.e. Lower Inflation, lower interest rates, lower input costs….
The ratchets reverse all of these inputs and put pressure across the board on Economics, Capital Market and asset classes
The greater the duration the greater the headwinds both long and short term ….
So while the markets seem to bounce around like a blind squirrel (not sure we have ever used that analogy before) there is logic or sense in the moves!
Oh…while not making a prediction…. It would not be surprising to see interest rates turn around and head down as rates price in the slowing of the Economy !
Have a Great “Making Cents out of Senseless Markets” Day!
John A. Kvale CFA, CFP
AI Content Authenticity: All of the following text content has been completed by myself and has not been edited or created by AI. Occasionally we do use AI for images and will note when appropriate.
Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
