Investing for Higher Short-Term Interest Rates and Slower Economic Growth

As a result, we favor investments that can do well in an environment of stable to falling long-term interest rates. These investments include long-term taxable municipal bonds, low volatility equities and defensive equity sectors, such as health care and REITS. Each of these investments can do well as economic growth cools.


The Cash Indicator (CI) has slipped well below its historical average. This suggests that there is plenty of liquidity in the global markets and volatility is tame. Still, we expect the CI to rise, along with equity market volatility, as economic growth slows. Without signs of recession or a huge spike in the CI, market dips should be a buying opportunity.


Any forecasts, figures, opinions or investment techniques and strategies explained are Stringer Asset Management, LLC’s as of the date of publication. They are considered to be accurate at the time of writing, but no warranty of accuracy is given and no liability in respect to error or omission is accepted. They are subject to change without reference or notification. The views contained herein are not be taken as an advice or a recommendation to buy or sell any investment and the material should not be relied upon as containing sufficient information to support an investment decision. It should be noted that the value of investments and the income from them may fluctuate in accordance with market conditions and taxation agreements and investors may not get back the full amount invested.

Past performance and yield may not be a reliable guide to future performance. Current performance may be higher or lower than the performance quoted.

The securities identified and described may not represent all of the securities purchased, sold or recommended for client accounts. The reader should not assume that an investment in the securities identified was or will be profitable.

Data is provided by various sources and prepared by Stringer Asset Management, LLC and has not been verified or audited by an independent accountant.