The thing with the stock market is that it gives you signals way ahead of time, but nobody wants to listen. The things I’ve been blabbering about over the past two years are the following:
- Higher interest rates will come just as the FED told us they would.
- Higher interest rates will squeeze valuations.
- Higher interest rates will slow down economic growth.
- Higher interest rates will slow down earnings growth.
So, let’s start by discussing these.
The 10-Year Treasury Passes 3%
When the 10-year Treasury was below 3%, nobody seemed to care except a few crazy analysts like this scribe. However, when it crossed 3%, the market suddenly looked at what had been going on for nearly the last two years. More →