Rigged to Fail—From Musk to Powell
For quite some time we have been warning about the rising shark fin of rising yields and rates.
As of this writing, one can almost hear John Williams’ orchestral theme song to Jaws ringing in the ears.
The Slow Creep
Mortgage rates in the U.S. have hit 3%, dramatically curtailing mortgage re-fi’s.
Meanwhile, oil prices are now at levels not seen since 2018 (as broader commodities in general are on the rise) while the tech stocks of the NASDAQ (most of which thrive on cheap rates) recently, and predictably, saw volatile swings, at one point down past 10% from their February 12th peak.
Rates are up, the dollar is up and as Barron’s reporter, Janet H. Cho, observed: “Things are getting interesting.”
Unfortunately for Barron’s readers, however, these “interesting” developments have little if nothing to do with what she described as “economic growth picking up.”
Economic growth? Huh? Really? C’mon…
Source: Matthew Piepenburg | GoldSwitzerland