It’s All about Rates

The markets are down today as rates are increasing. Some times the markets rally because higher rates mean higher growth. Not now. Higher rates are all about higher inflation. It’s been this way all year.

Here’s a graph of the NASDAQ and 10-year yield since February.

You can see the two graphs are mirror images. Rates go down, NASDAQ goes up. Rates go up, NASDAQ goes down.

Investors are more worried about inflation after seeing Powell speak today. Rates are up, market is down.

Over the long-term rates are probably going down.. but over the short-term …