The party could be over. Not the party that everyone is saying is finished; that one is purely a spectacle at this point–and if I may say so, a disgrace to the principles of truth and virtue upon which this great country was founded. As Forrest Gump would say, “that’s all I have to say about that”. I am talking about the low interest rate party that we have been celebrating since Great Britain seceded from the Union a few months ago. If you will remember when that happened, interest rates dropped about 1/4% over the next few trading sessions, causing a mini refinance boom and handily paying for my family’s summer vacation to New York City.
But now that the weather is turning colder and traders are covering up the swimming pools and getting out their cashmere turtle necks, it’s become time to sell stuff. Oil, Stocks, and Bonds are all getting the boot to free up some Wall Street cash. All that selling has pushed mortgage prices down under a level that had held its ground all summer long. My concern is that we aren’t going to break above that line anytime soon. That means higher rates ahead, irrespective of the outcome of the FOMC meeting next week.
The party may be over, but here’s a practical purchase idea that will envelope you in warm memories through Thanksgiving (or at least through the election). Take all that Brexit cash and check out the J. Peterman fall collection (it’s a real store, I just looked it up). This British Motorcycle Jacket will have you grinning from ear to ear each time you throw a leg over your vintage Triumph to race to the Hamptons this autumn: