Happy New Year

Interest Rates Straight Down and Risky Assets Higher...but Why?

Something Isn’t Quite Right

We ain’t gonna get a memo to tell us the exact, full story.

What we know is:

• Interest rates are down a WHOPPING .80% in very short order.

• Risky assets all levitated, on the back of this.

• The Federal Reserve and other central banks have signaled that interest rate increases are over.

• Logically then, since r is dramatically lower, so…