Living on lies is like living on junk food and TV, sooner or later it will kill you. From Matthew Piepenburg at goldswitzerland.com:
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…
Spinning the “economic growth” meme for rising yields is akin to attributing Lance Armstrong’s cycling success to an apple-a-day rather than a steroid per week.
What Barron’s feature articleis conveniently overlooking is the far more obvious fact that investors, here and around the world, are calling the Fed’s bluff, not swooning over “economic growth.”