- The minutes from the FOMC's mid-June meeting show no letup in the plan to continue hiking rates amid an "already very strong" economy.
- The Fed may be overflowing with PhDs, but markets have the considered judgement of all investors, and they may be saying, "not so fast."
- Since the minutes were released, the 2-10 yield curve has flattened by another three basis points to a barely visible 27 basis points - the lowest since 2007.
- And if rates need to head higher, why are utilities and REITs outperforming the financials by so much? Over the last three months the iShares U.S. Real Estate ETF (NYSEARCA:IYR) is up 7.3%, outperforming the XLF by a full 1,200 basis points. The Utility SPDR (XLU +0.3%) is up 3.6%, outperforming the XLF by 830 basis points.
- ETFs: XLF, TLT, TBT, FAS, XLU, FAZ, UTG, TMV, VPU, VFH, TBF, UYG, EDV, GUT, IDU, TMF, BUI, FNCL, IYF, BTO, TTT, FUTY, ZROZ, VGLT, IYG, TLH, RYU, RYF, UBT, FXO, SEF-OLD, FINU, SPTL, UPW, DLBS
- Now read: U.S. Financials And Yield Curve: Don't Panic, But Remain Cautious
Original article