7-2-24 Interest Rates are a Function of Inflation and Economic Growth

The Real Investment Show Podcast

Interest Rates have taken a big jump over the last few days, triggering an avalanche of emails, asking, 'what's going on?' Answer: Nothing. It's the end of the Quarter. There's lots of rebalancing going on, and interest rates have gotten very, very over-bought. Rates are stuck in a downward trend, which does not mean they're going to suddenly drop. Rates will track the slowing economic growth, however. Interest rates are a function of inflation, economic growth, and wages. Those are slowing down, but not dropping off a cliff, yet. And with a buy signal currently in place, rates could actually work a little higher for a bit. We're not expecting much a move in rates, more like drifting around in the neighborhood for a week or so. The move in Treasury-related ETF's however, was much larger than the move in interest rates: The first move, last week, was the end of Quarter rebalancing. The second move, yesterday, was the dividend effect of interest being paid into investment accounts. Hosted by RIA Chief Investment Strategist, Lance Roberts, CIO Produced by Brent Clanton, Executive Producer ------- Watch the video version of this podcast: https://www.youtube.com/watch?v=NuGhZlS_1J0&list=PLwNgo56zE4RAbkqxgdj-8GOvjZTp9_Zlz&index=1 ------- Get more info & commentary: https://realinvestmentadvice.com/insights/real-investment-daily/ ------- Visit our Site: https://www.realinvestmentadvice.com Contact Us: 1-855-RIA-PLAN -------- Subscribe to SimpleVisor: https://www.simplevisor.com/register-new -------- Connect with us on social: https://twitter.com/RealInvAdvice https://twitter.com/LanceRoberts https://www.facebook.com/RealInvestmentAdvice/ https://www.linkedin.com/in/realinvestmentadvice/ #InterestRates #SlowingEconomicGrowth #Wages #Inflation #Treasuries #Bonds #QuarterlyRebalancing #DividendPayment #20DMA #50DMA #200DMA #RSP #SP500 #InvestingAdvice #Money #Investing