Shelton Capital Management | Real Investment Insights

Today’s Interest Rates: Not the New Normal, Just Normal

Shelton Capital Management

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Markets are largely reducing expectations for a near-term U.S. Federal Reserve (Fed) rate hike, and we agree. July’s weak jobs report, the underwhelming retail sales report, and continued softening of the monthly inflation figures give the Fed room to stay patient in the coming months.

At the same time, our work suggests interest rates may remain higher than investors became accustomed to during the post-Global Financial Crisis era. For fixed-income investors, however, that does not have to be a negative. Higher starting yields can provide higher income potential, and a potentially stronger foundation for total returns than was available through much of the ultra-low-rate period.

Read the full article: https://www.etftrends.com/etf-strategist-content-hub/todays-interest-rates-not-the-new-normal-just-normal/