I caught up with Steve from his bond kingdom. We discussed the latest from the FED, and the expected trajectory of inflation, bond rates and the potential for deflation as stimulus is withdrawn.
Why are the markets in inflationary la-la land?
Steven Van Metre, Certified Financial Planner™ Professional, (CA Insurance License #0D45202 & Investment Advisory Representative with Atlas Financial Advisors, Inc., a Registered Investment Advisory firm.) is a financial planner, portfolio manager, and President of Steven Van Metre Financial. He specializes in retirement income strategies and the direct management of client assets.
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– I have changed my mind. I have shifted to the position that the FED will hike rates this month one time.
– As said many times before: Rising rates are DEFLATIONARY. Falling rates are INFLATIONARY. But no, A LOT OF people fail to acknowledge these truths. Because when rates rise bond prices FALL (= Deflation) and when rates FALL then the price of a bon rises (= Inflation).
– But the story above seems to “too original” for A LOT OF people.