Strange Times

These are strange times for the markets and the economy. Mortgage rates are now over 7% again. The unemployment rate is still just 4%. Fixed income investors now have 5% high quality bond yields and 4% cash yields. Those yields have been rising at a rapid clip. Consumers have been forced to deal with $100 oil and $5 gas prices. That’s led to an inflation rate of 3.4%, much higher than the Fed’s target which is...