Interest rates staying “higher for longer” — the long-held viewpoint of many economists and Federal Reserve officials, but not necessarily investors— is looking like a higher probability bet every passing day. Yet, last week’s run-up in yields seems to, once again, have taken many people by surprise, although one should not always make too much of equity or credit market movements during sleepy holiday weeks. What has been a conundrum for markets is that equities continue to rally on any sign of disinflationary readings with longer duration growth/quality doing the best, but the bond market has another take, suggesting inflation is not falling fast enough causing treasury yields to rise (price down/yield up). Eventually, we will see which wins out, but in time our view is that treasury yields will likely fall based on disinflationary pressures and decelerating global growth. On the wealth planning front, we discuss some planning considerations when buying a vacation home.
Click Here to Read the July 10, 2023, Economic Commentary
Click Here to Read the July 10, 2023, Investment Commentary
Click Here to Read the July 10, 2023, Wealth Planning Commentary
