Steve Blumenthal, CEO of CMG Capital Management Group, writes in Forbes about”the year that interest rates will finally rise.” An excerpt:
“Employment figures continue to surpass analyst estimates and the trend over the last six months has been strong. Last Friday’s upside surprise sent interest rates higher. It is expected that the Fed moves off its zero bound peg by September.
“Liftoff is likely just the beginning of the journey. That popular song rings louder in my head, All About That Fed. The problem with rising rates is that bonds lose money, especially when your starting place is ultra-low yields.
“Confusion deepens the more you turn on CNBC. One expert shouts rates are going higher. The next argues they’re headed lower. Both make a good case.”
See the full story: Rate Hike Ahead, Bond Model Says Sell
