Yield Curve Fears on the Horizon? From #RealInvestmentAdvice

I recently came across the website RealInvestmentAdvice.com and their discussion on the yield curve flattening.  I also read the Investmenthouse.com and their discussion on the FED always overshooting interest rate hikes.  This weekend’s newsletter from Investmenthouse.com even referred to the FED member’s justifications towards the flattening that the yield curve is no longer accurate; this time it’s different; etc.  It appears we will be a victim of the fed again.

There are two factors at work with rate hikes, one is size (25 basis points, versus 50 basis point rise) and time.  My question, if we know there is data showing a softening and there could be a need to postpone (versus withdrawl) and planned rate hike, what’s the harm?  I believe the fear is the market will react to that and they fear a selloff.  That is not the FED’s mandate however.  Just like previous presidents, secretaries of state, and congress, there has been very little decisive action, unless there is maximum pain in not making that decision.  Hopefully, the FED takes a play out of President Trump’s playbook and decides to be proactive versus reactive.

For reference, as of this writing, the 2/10 yield curve is sitting at .21 and heading for inversion.

For more on this from an excellent article, head over to:  http://realinvestmentadvice.com/dont-fear-the-yield-curve/

The Need for More – Diderot Effect from Medium

Diderot Image

What a great article.  I want to bring good things to my readers and this is one I came across which outlines why people buy things they don’t need and feel they need more.

The advice is sound and I feel an ackowledgement this happens to all of us is important.  I would add one more factor to this whole buying “Stuff” thing.  I think everyone has a couple items that are their weakness.  For me it’s Tech and Computers.  I always feel I need the best-of-the-best and then need all the accessories, too.  Some I use, some I don’t.

I would add to the article to use Pareto’s law to identify the top few things that are your “weakness” and train yourself to minimize purchases, skip a generation of new and learnt to make due.  If not for the cost savings, perhaps for your emotional well-being.

Read more at:  The Diderot Effect: Why We Want Things We Don’t Need — And What to Do About It