Below is a chart and brief excerpt from today's Early Look written by Hedgeye analyst Daryl Jones.
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In the Chart of the Day below, we look at the U.S. PCE Price Index versus the Fed Funds Rate going back to 1965. Some of you wise and experienced souls that were investing back in the 1970s may remember those days. And when Fed Fund’s rate peaked at 22.36%, you probably weren’t having a lot of fun as stock market operators. However, the ensuing decades of declining interest rates turned many millionaires into billionaires, particularly people in private equity. That all said, the most important point of the chart is looking at today and comparing PCE to the Fed Funds Rate. |
