The Return of Rising Rates

The Return of Rising Rates

  Short-term rates are on fire. The 2-year Treasury rate—a rough proxy for where the market thinks the Fed is headed with interest rates—rose to its highest level in 17 years this week. This is significant because sharp increases in short-term interest rates have...
Getting Expensive

Getting Expensive

  They say valuation—like beauty—is in the eye of the beholder. But we can still objectively value the stock market by comparing it to another asset, and that’s the goal of this week’s featured indicator. Specifically, the indicator compares stocks to a safe...
Stingy Stocks

Stingy Stocks

  The equity risk premium is something that has been talked a lot about recently in the financial world, mainly because it dropped to its lowest level in 14 years last month. This is concerning because it has the potential to pose a significant challenge to the...
Rapid Rates

Rapid Rates

  This week’s indicator focuses on interest rates—and why rapid changes in interest rates can negatively affect the stock market. When we talk about interest rates in the financial world, we often reference the 10-year Treasury rate, the rate at which the federal...
So Far, So Good

So Far, So Good

  This week’s indicator is called the Global Recession Probability Model. It uses a statistical technique called “logistic regression” to identify when global economic growth might slow down, with the probability ranging from 0% to 100%. We talked about this...