Inflation: Here Today… Gone Tomorrow?Rates are almost certain to rise... evidenced by what we see with the 10-year yield and break-even rates.
As a result, when rates do rise, this will temper demand. However, it will do nothing to ease the supply bottlenecks across the world.
Jobs Disappoint (again)… But Yields RiseThere are two monthly data 'prints' (above all others) which are said to shape the Fed's timing on any imminent taper: (1) employment; and (2) inflation. Re the former - hiring in the U.S. fell far below expectations last month, with employers adding just 194,000 jobs versus the expected 500,000
10-Year Bond Yields Jump… Sectors to AvoidKeep your eye on bond yields. The US 10-year was up 19 bps as bond investors started to price is stickier inflation - and the possibility of the Fed being forced to move sooner than expected. Yep... lock it in
Your Cash Really is ‘Trash’ the next 12+ MonthsFed Chair Jay Powell has told you "your cash is trash". What's more - he is quite happy with that... as they hold a (monetary) gun to savers (and retirees) heads. Question - what are you going to do about it?
