Markets will Get Over it..
A little comment after the close today. Modest Growth Story continues as we will repeat, the FED is not going to cut rates this year. Market rates have bounced up from 3.433 on Apr 6 to 3.833 today. For the rest of the year I would not be surprised to see a flat average in the 3.900 % area. Stocks will get over this and move higher.
The big story is what you should own. Consumer stocks will always dominate as we live in a consumer economy, but the real sparkle will be in other areas. more on that in coming days.
Here is the chart showing average market interest rates. The double top space between November 4th 2022 and March 8, 2023 stands out along with the little bank panic a couple of weeks ago. Of course we all know that the driver of the panic for banks is basically the huge difference between Fed Funds rates and market rates. That will not change as this FED has been out to lunch for a long time. But everyone will just move on with jobs and GDP Growth with the final estimate for the first quarter coming in at 2.5 % last Friday. I look for a little hiccup in the second quarter and then back to trend in the last half of the year.