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Your Survival Guy Can Live in a Four Percent World

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Your Survival Guy can live in a four percent world. Take a look at today’s yield curve. The 10yr Treasury is at levels we haven’t seen in years.

 

Action Line: Don’t let market timing get in the way of well-laid plans. Let’s talk.

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P.S. Sam Goldfarb discusses the market’s view of treasuries today in The Wall Street Journal, writing:

The yield on the benchmark 10-year U.S. Treasury note has surged close to its highest level in more than a decade, lifted by new bets that a strong economy could support years of higher interest rates.

The 10-year yield settled Friday at 4.060%, according to Tradeweb, slipping after a mixed monthly jobs report. But that was still up from 3.968% a week earlier and within touching distance of its 14-year high of 4.231% from October.

The recent climb in longer-term Treasury yields—which play a role in determining the cost of everything from mortgages to stocks—comes even as yields on shorter-term bonds have stalled. That is a sign investors think cooling inflation and resilient economic growth will allow the Federal Reserve to stop raising rates, then leave them unchanged at least until the end of the year. The yield on the 2-year Treasury note closed Friday at 4.791%, down from 4.895% a week earlier.

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E.J. Smith - Your Survival Guy

E.J. Smith is Founder of YourSurvivalGuy.com, Managing Director at Richard C. Young & Co., Ltd., a Managing Editor of Richardcyoung.com, and Editor-in-Chief of Youngresearch.com. His focus at all times is on preparing clients and readers for “Times Like These.” E.J. graduated from Babson College in Wellesley, Massachusetts, with a B.S. in finance and investments. In 1995, E.J. began his investment career at Fidelity Investments in Boston before joining Richard C. Young & Co., Ltd. in 1998. E.J. has trained at Sig Sauer Academy in Epping, NH. His first drum set was a 5-piece Slingerland with Zildjians. He grew-up worshiping Neil Peart (RIP) of the band Rush, and loves the song Tom Sawyer—the name of his family’s boat, a Grady-White Canyon 306. He grew up in Mattapoisett, MA, an idyllic small town on the water near Cape Cod. He spends time in Newport, RI and Bartlett, NH—both as far away from Wall Street as one could mentally get. The Newport office is on a quiet, tree lined street not far from the harbor and the log cabin in Bartlett, NH, the “Live Free or Die” state, sits on the edge of the White Mountain National Forest. He enjoys spending time in Key West (RIP JB) and Paris. Please get in touch with E.J. at ejsmith@yoursurvivalguy.com To sign up for my free monthly Survive & Thrive letter, click here.
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