Can Interest Rates Stay This High?

High is a relative term. Let's take a look at what is normal and the effects of artificially low interest rates ahead of the FOMC.

PRE-OPEN MARKET COMMENTS FED-DAY – The selling pressure has been heavy since August and Q3 earnings have not sparked buying in the last two weeks. Valuations are fairly stretched, but they have been that way most of the year. The economy is strong and higher interest rates have not knocked our legs out from under us. Traders were expecting growth to slow and they priced in a rate cut in Q4 on that notion. When that forecast was proven wrong, they scrambled to sell bonds and yields shot higher. That put additional selling pressure on the market.

Daily Bulletin Continues...