Yields on Long-End Will Stay In Place

This column is my opinion and expresses my views. Those views can change at a moments notice when the market changes. I am not right all the time and I do not expect to be. I disclose all my positions clearly listed on the page, and I do not trade my account on the stocks spoken of in this column unless fully disclosed. If that does not work for you stop reading and close the page. Do not bother me or harass me.

Otherwise, enjoy the column!

Subscribe to the Monster Stock Market Commentary and join the 2,529 subscribers getting it for FREE every day!

Inflation, as measured by the PCE, has ticked down in April.

 

Trimmed Mean PCE can not even hold 2 percent.

The price action in Oil will likely drag inflation down further.

This will probably create a flattening yield curve. However, I see this another way. The yield curve will be flattening as short-term rates rise to long-term rates as the Fed continues to jack rates higher. My expectation is that the long-end of the curve will likely remain in the current “range” due to falling inflation figures from the Oil run-off. The Fed’s continuation of raising rates is a positive and shows continued improvement in the US economy.

 

 

 

 

2 WEEK FREE TRIAL PERIOD OFFER UNTIL MAY 30TH IN OUR MEMBER AREA ON SEEKING ALPHA

READING THE MARKET PREMIUM RESEARCH

Subscribe to get more reports sent directly to your inbox.

[wysija_form id=”5″]

Tomorrow at 2 PM there will a Q&A session with me hosted on StockTwits. Get your questions in!

Stocktwits shared a chart on StockTwits

Q&A with @Scorpio244 this Thursday at 2 pm ET. Ask a 20 year veteran of the markets a question below!

Source: stocktwits.com/Stocktwits/message/84464840

 

Mott Capital Management, LLC is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Upon request the advisor will provide a list of all recommendation made during the past twelve months. Past performance is not indicative of future performance.