Interest Rates and Volatility

Overview

Equity markets were mixed last week with higher inflation readings at the top of minds for investors. The S&P 500 fell -0.3% as a -3.2% decline in consumer discretionary stocks was a drag.  Additionally, energy and utilities stocks also struggled. Ten-year Treasury yields rose modestly on the week but remain below the recent highs set last month and are basically flat for the last 3, 5, and 10 years. Two-year yields rose to new cycle highs on concerns that the Fed will move faster than first thought in 2022.

Year to date, energy has led the market gains holding around +50% alongside strength in WTI crude. Banks have rallied on a steeper yield curve. Technology continues its steady gains, posting gains slightly better than the overall S&P 500.  “Boring and stable” interest rate-sensitive utilities and consumer staples have been the laggards.

Interest Rates and Volatility

Interest rate volatility, more than levels, have led to a stall in the overall stock market the last 2 weeks.  We suspect this has another week of nervousness left, before the “greed” of missing out on a year-end rally and “chase” surfaces.

A New YouTube Show from the Investment Team!

We are pleased to let you know that we have also begun recording our weekly “News or Noise” piece and releasing it on YouTube! News or Noise is a series which takes aim and topical and timely stories from the media and examines them from an investor first standpoint.  We aim to answer the question – does this story matter for investors? Is it “news” or “noise”? Here is a link to the first video episode:

Stock Talk on YouTube

Our Stock Talk podcast is now available in video form on YouTube! Subscribe to the Oak Harvest Financial Group YouTube channel to get notified about those videos weekly, as well as loads of videos related to timely subjects involving financial planning.  Feedback and future topic suggestions are always welcome. Last Week’s Stock Talk video can be found here:

Oak Harvest YouTube Channel

https://www.youtube.com/channel/UCkLvOm9F5iC01-hHxRmUXpQ

Stock Talk Podcast (Weekly Market News and Opinion from Oak Harvest):

Stock Talk Podcast

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The Investor Mindset Podcast

 

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