We have mentioned interest rates probably more than you would like, but rates are so critical at this moment in time.
10 Year Treasury Yield Alert
The rate of the US 10 year treasury has fallen decidedly below our voodoo trend line.
Here are a few possibilities in order of fear with our possible probabilities .
- We are going into a recession (Very Scary but only a 10% chance from our perch)
- There is a shortage of supply due to the Fed’s QE purchases (20%)
- Mario Draghi’s latest comments on EU QE purchases are chasing investors here (10%)
- Pension/Institutional/Big investors are shifting to fixed income (10%)
- Russia Ukraine fears are pushing our rates down (10%)
- Something we do not know yet (40%)
We want to alert you to this, but not alarm. We are on VERY careful watch.
Have a Great Day!
John Kvale CFA, CFP
http://www.jkfinancialinc.com http://www.street-cents.com 8222 Douglas Ave # 590 Dallas, TX 75225
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:
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
www.jkfinancialinc.com www.street-cents.com 8222 Douglas Ave # 590 Dallas, TX 75225Share this:
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Posted in General Financial Planning, Investing/Financial Planning, Market Comments
Tagged BLS, CPI, Flip Flop, Interest Rate