More rate hikes are now being predicted, so the end-point is higher. Market is starting to think abo

Feb 22, 2023
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More rate hikes are now being predicted, so the end-point is higher. Market is starting to think about 6% by the Fall, which is more than had been bakedIn.

How much the rate hikes will be will be a function of the stock market.

Short rates (2-year) made a new high briefly.

Interest rate markets have been moving higher.

If you get 6% in a 6-month bill, you're getting 2/3rds of the longterm appreciation of the stock market with no risk at all. That would provide heady competition for the stock market. Cash could be not just a waste of time as it had been throughout 2010s.
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<div>More rate hikes are now being predicted, so the end-point is higher. Market is starting to think about 6% by the Fall, which is more than had been bakedIn. <br></div><div><br></div><div>How much the rate hikes will be will be a function of the stock market. <br></div><div><br></div><div>Short rates (2-year) made a new high briefly. <br></div><div><br></div><div>Interest rate markets have been moving higher. <br></div><div><br>If you get 6% in a 6-month bill, you're getting 2/3rds of the longterm appreciation of the stock market with no risk at all. That would provide heady competition for the stock market. Cash could be not just a waste of time as it had been throughout 2010s. <br></div>
More rate hikes are now being predicted, so the end-point is higher. Market is starting to think about 6% by the Fall, which is more than had been bakedIn.

How much the rate hikes will be will be a function of the stock market.

Short rates (2-year) made a new high briefly.

Interest rate markets have been moving higher.

If you get 6% in a 6-month bill, you're getting 2/3rds of the longterm appreciation of the stock market with no risk at all. That would provide heady competition for the stock market. Cash could be not just a waste of time as it had been throughout 2010s.

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