Temporary abating rates brings…

Sure, I think we see higher interest rates. My view is that U.S. 10 year bonds yield 3% – 3.2% into 2023.

For now, yields are a bit full and I look for the 10’s to come back to the 1.9% range into September – October 2022 timeframe.

Should that occur, I’d expect inflation readings to abate and GDP to decline.

With that comes a bunch correlated reactions such as the oil price declines, cyclicals come off the boil, rising stock inventories due to higher ‘produced’ prices not being paid for or accepted, while boding well for deflation producing technology companies.

April 8, 2022

by Rob Zdravevski

rob@karriasset.com.au