economic strength

Weekly Update

The Benefits of Higher Interest Rates

Published February 24, 2023


Below are a couple of articles about markets and the economy we thought you might find interesting. First, Delta Research talks about the benefits of higher interest rates. Second, Franklin Templeton’s ClearBridge Group discusses how housing as an economic driver has evolved from the period of the Great Financial Crisis. (more…)

Weekly Update

Yield Curve Inverts but Recession Still a Ways Off

Published April 8, 2022


The recent inversion in the yield curve has certainly generated a lot of headlines. The inversion occurs when short-term interest rates become higher than long-term interest rates. The driver of the inversion is usually a Federal Reserve raising rates while investors are skeptical about the long-term economic strength. Thus, the interest rate curve reflects a sort of temporary spike in rates. This inversion often suggests a recession is upcoming as the economic cycle has overheated to the point where the Fed has had to step in to slow it down. (more…)