Weekly Update:

Good Morning!

The ground continues to rise.

US Treasury yields propelled upwards last week, and the stock market’s response was to stumble a bit.  The Dow Jones Industrial Average lost over 1,300 points in two days.  This appeared to be the pullback that many people have been predicting.

On Thursday, we received the economic data that showed a cooling in inflation in the form of a lower than expected consumer price index increase.  The CPI without food and energy increased 0.1% for the month and 2.20% for the year.  While this seems like a reasonable growth rate, the 48-year low unemployment rate of 3.70% makes me nervous about wage-based inflation.

The 10-year US Treasury stands at 3.15%, and the 2-year US Treasury is at 2.84%.  The yield curve is flat.

Rising rates may cause profitability to be a challenge.  Contact your advisor to discuss ways to grow profitability in this competitive market.  All of us at McQueen Financial are dedicated to your long-term success.

Have a great week.

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