In the last week, the financial media’s hot topic has been interest rates. What’s going on with them? Where are they going? When will the Fed begin raising rates and how will that affect markets when they do? Naturally, investors are curious about interest rates too. So we put together a little video for you.
Many people might be surprised to hear that interest rates have been going up for a year now. Tom shows that through a chart of the Ten Year US Treasury Yield (check it out in the video!). The chart used in the video comes courtesy our good friends at Dorsey Wright and Associates.
In March of 2013, the Ten Year US Treasury Yield was at 2.0%. Currently in March of 2014, the yield is at 2.7%. So rates on the Ten Year US Treasury have clearly risen in the last year. Yields will continue to go higher as long as the current trend stays in place.
The beauty of point and figure charts is that they show us what is happening right now. They allow us to stop wasting our time listening to market “experts” on tv.
Make sure to watch this week’s Mullooly Asset Management video update to hear more about the current interest rate environment.