On this week’s episode of Tape Talk, Quint and Daniel review what’s been a quiet week in the market so far and dive into the much-hyped yield curve action.
US stocks stabilized over the week after the previous weeks volatile sell-offs. Much of this calmer action seems to be attributed to the fact that economic data keeps coming in rather positive while headlines around the trade war escalation also seem to have slowed, for now.
During the recording of this week’s show, the FOMC meeting minutes from the most recent rate cut were released, which proved to be a non-event. While the Fed reiterated its stance that the recent rate cut may not be part of a new trend, markets seemed to find hope that the board overall was mixed on how deeply to cut rates this go around.
How Rates Work
While the Federal Reserve is heavily influencing liquidity and short-term rates in this environment, it’s really the ten-year rates that people are focusing on. In fact, the 10-year yield was the catalyst for the most recent inversion on the yield curve. Quint examines what this means for investors and what the Fed can really control here versus what the market is in the driver’s seat on.
What To Do Here
For investors, it all comes down to controlling what you can. This means having a financial plan, knowing your rate of return, and living within responsible spending habits to achieve your plan. Quint and Daniel wrap things up this week by examing the small things investors can do that will be important building blocks for their long-term financial success.