{"id":581,"date":"2021-06-14T00:00:00","date_gmt":"2021-06-14T00:00:00","guid":{"rendered":"https:\/\/www.retirementrefined.com\/index.php\/2021\/06\/14\/bond-yields-going-lower\/"},"modified":"2021-06-14T00:00:00","modified_gmt":"2021-06-14T00:00:00","slug":"bond-yields-going-lower","status":"publish","type":"post","link":"https:\/\/www.retirementrefined.com\/bond-yields-going-lower","title":{"rendered":"Bond Yields Going Lower?"},"content":{"rendered":"

Who would have thought, as the economy continues to gain steam, interest rates would go lower?<\/strong>\u00a0 As I did not expect a huge spike in rates, the decrease in the 10 Year US Treasury on March 31, 2021 from 1.75% to 1.46% last Friday is thought provoking.<\/p>\n

\"\"Last week our Consumer Price Index (CPI<\/strong>) which represents food, energy, groceries, housing<\/strong> costs and sales<\/strong> across various goods<\/strong>, increased 5%<\/strong> from a year prior, the largest increase since August 2008.\u00a0 <\/strong><\/p>\n

\u00a0<\/strong>\u201cCore Inflation,\u201d<\/strong> which strips out food and energy prices, rose 3.8%<\/strong> – close to the largest increase in 3 decades<\/strong>.<\/p>\n

Interest rates staying resiliently low is suggesting that investors are believing Chairman Powell that “inflation is transitory.”\u00a0 This week the Federal Reserve meets, so the verbiage that comes from the meeting will be worth paying attention to, in light of red-hot data!<\/p>\n

Lower Rates Push Technology (Growth Stocks) Higher<\/strong><\/p>\n

\u00a0<\/strong>Value stocks, year-to-date<\/strong>, are significantly beating growth stocks, however the discussion is starting to change.\u00a0 Because rates have decreased, investors are starting to believe that post-pandemic, the economy will revert to the levels of growth last seen, December 2019<\/strong>, which is just fine by me.\"\"<\/p>\n

Month to date, including last week<\/strong>, we are seeing at least a brief return to the growth stock leadership.<\/p>\n

For the week, the Dow Jones retreated (-.78%), the S&P rose .43%, the Russell 2000 2.18% and the Nasdaq Composite 1.85%.\u00a0 Month-to-date, large growth stocks are up approximately 2.10% and large value is flattish, up .26%.<\/p>\n

Over the pond, foreign stocks rose .34% with emerging market stocks flat up slightly, .09%<\/p>\n

So, will growth or value lead us forward<\/strong>?\u00a0 My philosophy<\/strong> (for years), is to not overweight growth or value, however to have diversified client portfolios that closely equal-weight both categories.\u00a0 Keep in mind, market timing has proven time and time again to be very challenging.<\/p>\n

A Huge Smile<\/strong><\/p>\n

My favorite part of the weekend, happened on Sunday around, 2:30pm.\u00a0 Michelle\u2019s dad (Bob) had his fishing pole cast out in the bay.\u00a0 A bunch of us, including Bob, were sitting on the deck enjoying a gorgeous afternoon looking out at the water.<\/p>\n

The pole started to bend a couple of times, then Bob walked without any rush to the fishing pole.\u00a0 You could tell the man has done this countless times.\u00a0 As he reeled in an 8-pound shark, everyone walked to the end of the dock to watch.\u00a0 The smile on Ellen\u2019s daughters face, (Millie, age 3) was so special.\u00a0 To see a 3-year-old witness the live shark being reeled in, then held upside down by Bob was absolutely priceless.<\/p>\n

Just reminds me, it\u2019s really the simply things in life that are the most special!!!<\/p>\n

\"\"<\/p>\n","protected":false},"excerpt":{"rendered":"

Who would have thought, as the economy continues to gain steam, interest rates would go lower?\u00a0 As I did not expect a huge spike in rates, the decrease in the 10 Year US Treasury on March 31, 2021 from 1.75% to 1.46% last Friday is thought provoking. Last week our Consumer Price Index (CPI) which […]<\/p>\n","protected":false},"author":3,"featured_media":582,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"post_statement":"","post_description":"","post_cta":"","post_button":"Read More","post_button_url":"","compliance_id":"","post_disclaimer":"","footnotes":""},"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/www.retirementrefined.com\/wp-json\/wp\/v2\/posts\/581"}],"collection":[{"href":"https:\/\/www.retirementrefined.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.retirementrefined.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.retirementrefined.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.retirementrefined.com\/wp-json\/wp\/v2\/comments?post=581"}],"version-history":[{"count":0,"href":"https:\/\/www.retirementrefined.com\/wp-json\/wp\/v2\/posts\/581\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.retirementrefined.com\/wp-json\/wp\/v2\/media\/582"}],"wp:attachment":[{"href":"https:\/\/www.retirementrefined.com\/wp-json\/wp\/v2\/media?parent=581"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.retirementrefined.com\/wp-json\/wp\/v2\/categories?post=581"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.retirementrefined.com\/wp-json\/wp\/v2\/tags?post=581"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}