The Denominator Declines Dramatically

You Think That Earnings Drive Markets? That's so cute....

Today’s Interest Rate Move

Very easy, interest rates down, USD weaker » USD risky assets higher.

Higher interest rates did provide opportunities for the savers and planners, so the drop in interest rates creates new challenges to these structures.

The combination of events make it even more important to understand how they work, so that you think about whether they fit your situation. Since we do not control the inputs, it’s best to be prepared, in case the opportunity presents itself (like RIGHT NOW, because portfolios have gotten a much-sought ‘break’ from ongoing declines).

Today’s market move has meant that 10-yr interest rates have dropped by 0.5%. Here’s the issue, for subscribers.