Investors are piling into stocks this morning after the consumer price index came in about as expected. Investors who have ‘sat out the rally’ are dumping money in as fast as they can and the S&P500 is up 1.25% at this moment.
The CME FedWatch tool has the chance of a rate hike at the September FOMC meeting at 9% now – there is an awful lot riding on this number given that the meeting is 40 days away yet. But as always investors do what they do. As in all rallys there are always some who will say the sky is falling and that equities are dramatically overvalued–of course this doesn’t matter if the great majority say ‘buy, buy, buy’.
Interest rates are falling a bit with the 10 year treasury now back under 4% at 3.98%–just can’t seem to hold above 4%. Helping interest rates to lower levels were 1st time jobless claims coming in higher than expected–but honestly 1 weekly number means very little–1 is not a trend.
I nibbled into a bit more of the Jackson Financial 8% perpetual–at $24.97. It is about the best 8% yielder I can find out there. For the time being I have given up hoping for higher CD rates – seems like the bankers have all the deposits they need for now.