Rising interest rates have given a scare to the markets. There's no question about that. The 10-year yield has been driving the markets - exacerbated by the blow up in the VIX market. We warned of this scenario driving the market lower just two months ago in our report "The Next Big Short And Potential Cause For Market Decline." We will be following up that piece with another relatively soon.
What's driving rates higher?
- Tax bill passing
- Wages increasing
- Inflation expectations rising
- Fed unwind
We believe that higher rates, excessive valuations, government shutdown