On this week’s Tape Talk, Quint and Daniel review the current moves in interest rates and what that means to investors’ portfolios.
Before diving into this week’s meat and potatoes we take a look at some of the headlines this week and some updates we’ve been making in the portfolios.
Last week’s jobs report was decently solid news. By and large, people who want jobs are finding them and people who have jobs are seeing increases in wages. However, since the news hit the headlines the stock market has suffered. We discuss what might be behind this “sell the news” event.
While stocks have traded lower, bond yields have actually risen. We examine what this has to do with the recent trade wars and where yields may be heading from here.
While interest rates rallied earlier in the year they have traded in a solid range since then. However, over the past couple weeks, long-term yields such as the 10-year treasury have managed to break out to the upside. Moving from 3.00% to 3.20% may not sound like a big difference but we’ll take a look at how this small change can have big ripple effects.
How Yields Affect You
The changing environment in yields doesn’t just affect Wall Street, banks, and big corporations. We are all exposed to changes in interest rates in various places in our financial life. We’ll examine a few of the key things investors need to be mindful here as interest rates tick higher and where you might also benefit from the changes.