The Nasdaq just went out last week at new 7-month highs.

Growth stocks are back.

But why?

Interest Rates are falling at a record pace.

And when you look at the intermarket relationships, it makes a lot of sense: [Read more…]

Ever since the 2-year yield bottomed in Q1 of 2021 Technology stocks have struggled. Growth became the worst place to be.

It was NOT a coincidence that once those rates started to rise in early 2021, the Nasdaq New Highs list peaked, the Nasdaq Advance-Decline line peaked, all the ARK Funds peaked, Chinese internet peaked, Biotech peaked and everyone piled had into SPACs before they all came crashing down.

Because the 2-year yield was rising so fast, and the longer end of the curve couldn’t keep up, we got the mother of all yield curve inversions.

The media loves to scare people with it because I think an inverted yield curve has predicted something like 50 of the last 8 recessions.

But now it’s bon voyage yield curve inversion. Good riddance!

We’re seeing the largest 5-day rate of change in the yield curve since the early 1980s: [Read more…]