The US Interest Rate Issue

In today's FSO Market Wrap, Market Commentator, Chris Puplava addresses the interest rates issue. Wall Street Reconnects With Main Street

• The current equity slide may continue as Wall Street readjusts to Main Street reality amidst a rising interest rate environment and continued housing slump despite CNBC constantly suggesting a possible bottom. It’s anyone’s guess how far and long the markets will correct. But one thing has remained constant over the past year, and that is the market's ability to surprise to the upside. Private equity deals and M&A activity may put a floor under the markets, but this is less likely to be the case with rising interest rates that reduce their profit projections by raising the cost of borrowing debt to fund their deals. It seems as if all eyes have now turned from watching the Fed and China to watching interest rates, and movements in the Treasury markets may be the key indicator to determine when the correction in the markets may subside.