Woah! That's quite a move in the bond market... All systems go for equities and refinancing!

Over the past week we have had a huge move in the interest rates. Check out the charts below:

These are not moves that one would normally expect to see if the economy is going to expect to roar ahead. Economic growth is generally accompanied with higher interest rates, not lower ones. Well how can we explain this?

• Growth will moderate from the abnormally high levels of the past few quarters
• We will probably see some stops and starts in economies as the delta variant and other Covid scares become more common (check out some of the renewed lockdown put in place in Asia recently)
• There is still a lot of cash on the sidelines and some people have taken advantage of a recent pullback in bonds to purchase them as stocks and property markets are at all time highs
• There is still a bit of reluctance to hop into the crypto space, which should be a reason why it will remain rangebound for some time to come (another 3-6 months in my opinion).

So what can you do from here?

• These lower rates will help those that are looking to purchase properties or refinance (see previous blog post: (https://thrivingwithinterest.blogspot.com/2021/07/housing-market-up-dont-buy-but.html)
• This will also help those that are looking for alternative investments such as commodities, crypto and others
• Buy equities, especially those in the US and Europe. I have written about that here: (https://thrivingwithinterest.blogspot.com/2021/07/3-market-lessons-from-1st-half-of-2021.html)

What do you think about this bond move? Pretty impressive for a normally sleepy market!