Well, You Knew Nature Shows Were Going to Venture Into This Subject
Don't Back Down
Biden Slams 'Outrageous' Case Against Israel After Failing to Deter ICC Action
The U.S. Response to Iranian President's Death Is Disgraceful
Two Charts Democrats Don't Want You to See
Now Males Invade Women's Rights Outrage, as Ron DeSantis Is Blocking a MAN's...
Here's When Schumer Plans to Vote on the Border Bill
Biden Really Just Said This About an American Held Hostage by Hamas
Poll Spells Bad News for Biden in Arizona
Prosecution Rests in Trump's Hush Money Trial
Two Jordanian Nationals Tried to Breach a U.S. Military Base in Possible ISIS...
Members of Congress Are Actually Praising the ICC for Coming After Netanyahu
Supreme Court Turns Away Challenge on So-Called 'Assault Weapons' Ban
Biden Blasts an 'Extreme' SCOTUS Ruling on Affirmative Action, but There's Just One...
Republican Senators Will Introduce Legislation to Legalize IVF Treatment Nationally
OPINION

The Year Officially Begins

The opinions expressed by columnists are their own and do not necessarily represent the views of Townhall.com.
Advertisement
Advertisement
Advertisement

On Friday, the 10-year Treasury bond finished yielding 2.12% after starting the session up to 2.20%. The reason it was slammed was yet another lackluster economic report; this on the latest read of the Manufacturing PMI Report (ISM). The last couple of weeks of the year had that holiday vibe; sort of nothing matters, so let's ignore it. Yet early morning rallies faded and on Friday, the market couldn't ignore more signs of trouble coming out of the economic doldrums.

Advertisement

Interestingly, the plunging prices paid component should have been a reason to celebrate, but its rapid decline rattled folks who understand the negative implications.

Bonds See No Recovery

Every year, since 2009, experts have called for the bond rally to fizzle, and every year they have been wrong. So, as experts are known to do, these same experts double down until it is unrealistic that any average investor could still be solvent.

Be that as it may, I suspect bonds could finally see yields spike and big money rotate into equities, but the year is going to be long with lots of twist and turns.

For now, I will let the bond market tell me what is happening rather than second-guess the action.

Where's the Money?

One reason people may feel the economy is not moving or passing them by is that money is not flowing through society with the velocity it once did. Only after Reagan and Bush tax cuts did money circulate in the economy at a faster and deeper speed- or velocity.

Advertisement

The irony of greater velocity is that it is the first part of a move that generates inflation. However, in this case, people are dealing with so many aspects of their lives inflating that perhaps the velocity of money will result in fatter paychecks- an inflation we all enjoy.

Join the conversation as a VIP Member

Recommended

Trending on Townhall Videos