Over the last few weeks, small caps, Bitcoin, oil, and other market-based measures have moved higher alongside rising U.S. Treasury yields. The direction of these market signals, collectively, likely suggests expectations for growth and inflation are improving.
Source: Koyfin.
If real economic activity were to accelerate, we would expect to see a continuation of the recent trend higher in riskier asset prices and U.S. Treasury yields. One of the takeaways from this developing setup is that the direction of these signals, if they continue, likely pushes Fed rate cuts out even further. As we approach the March 20th FOMC meeting, we will continue to provide updates on this market data and upcoming economic releases.
The views expressed herein are presented for informational purposes only and are not intended as a recommendation to invest in any particular asset class or security or as a promise of future performance. The information, opinions, and views contained herein are current only as of the date hereof and are subject to change at any time without prior notice.
Investment Strategist
Boyd Watterson Asset Management, LLC