Everyone is obsessing over the Fed’s rate cut plans. Meanwhile, interest rates are climbing to their highest level since early December.
Instead of following Fed gossip and what-ifs, focus on what is: Yields continue to creep higher as inflationary assets rip.
Check out our Global Benchmark Rate Composite, an equal-weight basket of Developed Market 10-year yields (Germany, UK, Canada, France, Italy, Spain, Switzerland, Japan, Australia, and the US):
Our global composite is holding well above the lower bounds of a yearlong range, catching toward the underside of a flat 200-day moving average.
Yields on sovereign debt show no signs of an imminent collapse.
You didn't fall for those lies about falling interest rates did you?
At this point, it's 2024.
We know for a fact that Wall Street banks are not here to help you or tell you the truth. That's not the business they're in.
The Financial Media has never been in the business of telling you the truth, so that's nothing new.
But the fact that they've been telling you all year that interest rates are going lower is hilarious.
None of these groups of people are here to help you. They're only here to help themselves.
And that's fine. There's nothing wrong with a Bank trying to profit for their shareholders. Just like there's nothing wrong with a media business trying to profit for their respective parent companies.
Profits are good.
Just don't think for one second that they're going to put your needs ahead of theirs lol.
Welcome back to Under the Hood, where we'll cover all the action for the two weeks ended March 29, 2024. This report is published bi-weekly, in rotation with The Minor Leaguers.
What we do here is analyze the most popular stocks during the week and find opportunities to either join in and ride these momentum names higher, or fade the crowd and bet against them.
We use a variety of sources to generate the list of most popular names.
There are so many new data sources available that all we need to do is organize and curate them in a way that shows us exactly what we want: a list of stocks that are seeing an unusual increase in investor interest.
Steve Strazza brought up charts of the energy, materials, and commodities sectors on today's Flow Show. These are "peer indexes," meaning they often trend together.
And the current trends suggest we need to add more bullish positions in these areas.
The one name that stood out the most was Freeport McMoRan $FCX: