Are Interest Rates No Longer a Problem?

In February, the main catalyst cited for stocks selling off was higher interest rates. However, March has bought in a different tone. The last week or so has been a classic risk-off move across markets. Stocks are lower, bond yields are lower. Has something changed? Are interest rates no longer a problem? I have a few takes on this along with some updated thoughts on how I'm positioning portfolios.

Long-term interest rates finding support

The 10-year Treasury had been trading in a range of 2.81-2.90% since February 23, but yesterday it broke through that range, closing at 2.78%. We have some other good signs of strength. We've seen very strong bond performance on down days for stocks, but only minor weakness on up days. Sort of a version of higher highs and higher lows if you will. To put some numbers to it, the S&P was down 4.6% last week, and the 10-year Treasury was up 0.36%. This week (through Tuesday) stocks have rebounded 1% but bonds are up 0.33%....789 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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