The Rate Dance

The Rate Dance

  In the world of finance, two key interest rates reign supreme: the 10-year Treasury yield and the Fed Funds rate. The Fed Funds rate is set by the Federal Reserve, and changes to this rate are designed to influence the 10-year Treasury yield—a market-based...
Take it Easy

Take it Easy

  Fast or slow? When it comes to rate cuts, this week’s featured chart suggests that slower is better. The chart shows how the S&P 500 has historically responded to different rate-cut speeds. There have been eight “slow cycles” where the Fed...
The Job Seeker’s Ratio

The Job Seeker’s Ratio

  The market got a jolt from the latest JOLTS (Job Openings and Labor Turnover Survey) report this week. According to the latest data from the Bureau of Labor Statistics, the number of job openings in the U.S. dropped to 7.67 million in July. That’s the lowest...
Revisions

Revisions

  There’s a famous scene in the classic western Once Upon a Time in the West (1968) where the character Harmonica steps off a train and is confronted by three gunmen. When Harmonica asks if they brought a horse for him, one of the gunmen smirks and says, “Looks...
Butterfly Effect

Butterfly Effect

  In chaos theory, there’s this concept known as the butterfly effect. You might have heard of it or seen the 2004 movie by the same name. The idea is that tiny actions can lead to unpredictable changes over time. The famous example is a butterfly flaps its wings...