FYI: The environment has been changing but it’s only really become part of the investor consciousness within the last two weeks: Suddenly, cash has a cost. Money isn’t free. Not every business model makes sense. Not every hurdle for investment is sitting an inch or so off the ground.
It’s this normalization of interest rates which, despite it being in effect for three years now, that has all of a sudden gotten some attention.
The yield on a 10-year Treasury now stands above 3%, and seems to want to stay there for the time being. This you’ve heard about.
What you may not have heard about is the fact that 1 to 3 month T-Bills are now yielding almost 2% (TWO PERCENT)! This is not a negative development, money ought not be free in a normal economic environment, only in an emergency should zero even be in the vernacular. But the realization that this is the case is only suddenly dawning upon people.
Regards,
Ted
https://thereformedbroker.com/2018/10/22/suddenly/
