Last Week in Review: Complacency heading into spring
Volatility has disappeared in the financial markets and a sense of calm and complacency has emerged. Why?
Well thanks to the Fed, and inflation and higher rates not being a threat -- both Stocks and Bond prices are moving higher.
For 2019, home loan rates have been stable at one-year lows (look at the chart below), and everyone's stock portfolio is increasing in value. What's not to like?
Complacency will change to volatility at some point, and what we are watching is rising wages and how that may increase inflation in months to come.
Should that happen, we could experience a real shock to the US Bond market and the present complacent interest rate market will be over -- and in a hurry.
But for now, complacency is the theme as we head into the Spring housing market...meaning good times for us.