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Strategies & Market Trends : Young and Older Folk Portfolio -- Ignore unavailable to you. Want to Upgrade?

To: Max2.0 who wrote (9800)	9/21/2024 4:10:36 PM
From: SeeksQuality	Respond to of 21817

Note that the impact of rate cuts is larger on the short-term rates than on the long-term rates, yet it is the long-term rates that have the most meaningful impact in most situations. At the start of the year, 1-mo rates were 5.55% while 10-yr rates were 3.95%. Now the 1-mo rates are down to 4.87% while 10-yr rates are 3.73%. If this causes inflation to pick up, the 10-yr rates will quickly rebound. They might come down a LITTLE more, but I expect they'll find a hard floor around 3.5% unless the economy craters. At 3.73% 10-year rates and inflation sticking in the 3% to 3.5% range, the real return is already very low.