The weekly Market Update I write for AdvisorShares is posted and includes the following;
Interest rates have generally been moving higher since the FOMC last met and raised rates and the market seems to be taking it at its intended word for three more hikes in 2018. The yield on the US Ten Year Treasury Note closed Friday at 2.47%. The yield on the Two Year US Treasury has also been going up and doing so at a faster rate than the ten year, causing the curve to flatten some. We’ve touched on this in past updates and now the spread stands at 51 basis points. The curve flattening may or may not lead to an inversion. The trend to flatten is not problematic it is the inversion that is problematic as it impedes access to capital which is recessionary. It may never invert or it might but markets historically have done well as the curve has flattened. We will sound the alarm very loudly if the curve inverts, tell you why it won’t be different but as we have said before, the curve isn’t inverted until it is inverted. Incidentally, Jeff Gundlach Tweeted that at 1.95%, the two year yields more than the S&P 500 which it has not done since 2008.
Please click through to read the entire update.
Recapping some of the posts on my page at TheMaven;
- An analogy comparing the Dakar Rally to Bitcoin
- Understanding the weighting of the tech sector in the S&P 500
- How to make yourself antifragile in the face of middle aged job loss
- Solving inequality from the bottom up
I hope you can click through, I am posting a lot of content and having a blast with this new writing outlet.
A couple of tinted pictures from my visit last month to the NYSE Floor.