Why 5% Rates Aren’t Scaring the Market
Apple Podcasts 
Spotify Interest rates are climbing, but the market doesn’t seem particularly bothered. Greg and Doug dig into why the 10-year Treasury has pushed above 5%, arguing that stronger economic growth, persistent inflation, and the massive AI infrastructure buildout may be doing more to drive rates than fears about U.S. debt. They also look at the relationship between Iran, oil prices and inflation; why higher rates may hurt traditional parts of the economy without slowing AI investment; and what the approaching midterm elections could mean for markets. Finally, they examine the historically strong stretch that tends to follow the first three quarters of a midterm year, and why falling political uncertainty could provide another tailwind for investors.
Key Takeaways
00:17 — Why 5% interest rates aren’t scaring the market
04:57 — Iran, oil and the inflation expectation
06:39 — Are the U.S. and Iran moving closer to a deal?
08:02 — Why higher rates aren’t slowing the AI buildout
11:15 — The historically strongest stretch of the midterm cycle
14:45 — Why markets like falling uncertainty
Links:
Connect with our hosts
Subscribe and stay in touch
Disclosure
The information in this podcast is educational and general in nature and does not take into consideration the listener's personal circumstances. Therefore, it is not intended to be a substitute for specific, individualized financial, legal, or tax advice. To determine which strategies or investments may be suitable for you, consult the appropriate, qualified professional prior to making a final decision.
Different types of investments involve varying degrees of risk. Therefore, it should not be assumed that future performance of any specific investment or investment strategy (including the investments and/or investment strategies referenced in our blogs/podcasts) or any other investment and/or non-investment-related content or services will be profitable, equal any historical performance level(s), be suitable or appropriate for a reader/listener’s individual situation, or prove successful. Moreover, no portion of the blog/podcast content should be construed as a substitute for individual advice or services from the financial professional(s) of a reader/listener’s choosing, including Stokes Family, LLC, a registered investment adviser with the SEC, with which the blogger/podcasters are affiliated.