John told us that the interest rates in the Bond Market have been going down so that the long term rates are now lower than the short term rates. This is called an “inverted yield curve” in the industry. It is thought to be a sign of an upcoming recession. But John does not agree and doesn’t see a recession for at least 12 months. He believes the decreasing interest rates are due to the influx of foreign money coming the U.S. because the rates are so much higher than in other countries.
John warned us not to react to the daily changes (volatility) in the market that are partially due to the trade imbalances with the Mexican and Chinese tariffs. Those will be resolved and John predicts a new high on the S&P of 3,000 by the end of the year.
Give John a call with any of your investing questions. He will give the best suggestions based on your needs not his company’s.