Web Statistics 200 years of US interest rates in one chart

Thursday, 24 November 2016

200 years of US interest rates in one chart


200 years of US interest rates in one chart

"200 years of US interest rates in one chart" 

in the news 200 years of US interest rates in one chart? What this all about..... See below. 

------------------------------

Sentiment Trader shows a very interesting chart today. This chart shows the only place for interest rates to go from here is higher. Well that is of course a hypothetical, but we will explain below. 

Looking at a chart of U.S. interest rates over the last two centuries, you can see that a bottoming formation that has been in place for the last several years. It will bring with it, many opportunities. 

We've been looking at the process that we think has been taking place over the last six to eight years in our interest rates, and we think now that the 2012 low probably is going to prove to be the low just the way 1946 proved to be the low in the last cycle, Please take a look at the chart below, and note the historical data that does go all the way back to the 1800's. This is quite interesting. 




The yield on the U.S. 10-year has surged to 2.3 percent following the election on higher inflation expectations under President-elect Donald Trump and the potential for a Fed rate hike next month. This is quite amazing....

Maybe it would not be very healthy [to raise rates], just yet but We are definitely watching 3 percent because that's going to be the ultimate level at which we can definitively say that rates have reversed. That 3 percent also corresponds with the 1980 downtrend on the chart you see above. 

We are looking at the formation of the higher low, and the 10-year note would have to put in place a slightly higher high to define the real technical evidence of the reversal. So far there is no evidence of that, but it seems that when you look at the chart, there is going to be a VERY LARGE rally coming down the pipe soon enough. We do not know when, but we are keeping an eye on things. 

Ultimately, when you think about it,  higher rates will boost equity prices in the near term, as past cycles have signaled a boom in stocks and the economy.

The early stage of a bull market can be accompanied by the initial rising rate cycle, It isn't until you get to about 5 percent that you start seeing or start having very big problems. So we thought we would talk about this, in regards to TRUMP stepping into the white house soon, and his a bit of a swinging gun. NO one really knows what he is going to do, when he is actually in office. 

The S&P 500 closed Thursday within a fraction of its all-time high

DON'T MISS OUT ON OUR HOTTEST updates Click the link below....

No comments:

Post a Comment