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Interest Rates

Market Update – “Investing” is Winning

By Blog

If you’ve ever wondered why financial media doesn’t talk more about things other than stocks and bonds, it’s generally because it doesn’t serve the business model that allows them to survive, which is another way of saying, there isn’t as much money in it. If risk-adjusted opportunity was most important, or those things that could benefit the viewer most, we’d be hearing a lot more about gold, silver, and other natural resource investments, especially given their performance so far this year. The chart below tells a pretty interesting story – the major stock market indexes are up about 11% (SPY…

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What to Think of Interest Rates and Bonds – Revisited

By Blog

We wanted to revisit a blog post from exactly one year ago today that touched on why a rapid rise in interest rates matters for stocks. At the time – Feb 9, 2018 – interest rates had risen over 100% from their lows in 2016. Our point was that when interest rates, one of the key lubricants particularly in a highly indebted economy rise, it presents a strong headwind to continued growth and could serve to catalyze the changing of the business cycle. This dynamic could be even more pronounced in an environment where financial markets are extremely overvalued which…

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