I agree with michael, but something is missing here. If a 6 month cd pays 5%, is that mean that annual inflation is about 10% ? If so why reported inflation is about 3% a year ? who is lying here, Government or bond market ?
I never believed reported inflation numbers from government simply because I see inflation on my daily expenses. Form what I see in San Diego it’s about 8% to 10% a year
I tried to rationalize bond market and understanding why would someone put their money in long term treasury when it pays less than short term while dollar is depreciating like Titanic. I read about market expectation, inverted yield curve ,…… bla bla bla. It just doesn’t add up unless we are going back to 1% over night rate and a major recession. If so what is going on with stock market at 13,565 ? Sometimes it feels like living in Matrix.
