Things are Acting Fairly Nornally

This week was another interesting week and in the world of investing things are acting fairly normally. In particular, the stock market had the best return during a 3 month period since 2007 and the treasury yield curve set a record. These are 2 good signs that the economic business cycle and investments are acting fairly normally and this is very good.

The stock market is increasing in a fairly choppy manner as it should for an economy that is coming out of a bottom. It should increase as interest rates increase which leads to the 2nd point. The difference in the interest rate of a 10 year treasury bond relative to a 2 year treasury bond reached an all-time record high. The 10 year bond rate increased while the 2 year bond rate has held fairly flat. Since this time, the 10 year bond rate has come down which means that the record was reached due to short term traders rather than investors. The important thing is that the treasury bond yield curve is acting fairly normally.

The bottom line is that we have to persevere and keep things in perspective and in priority. This week some wonderful things happened in my family which was a real blessing and more important than a treasury yield curve or stock market record. It is also good to see account balances grow.