With the third quarter behind us, earnings season is back underway, which means investors are once again preparing for that special annual tradition: corporate executives explaining why everything is somehow both fantastic and concerning at the same time.
Last week, America considered cutting back, then remembered pumpkin spice is only available for a limited time. Economic uncertainty, on the other hand, seems willing to work around your schedule. The latest reports showed consumers spending more money while feeling worse about the outlook, which makes sense if you’ve ever decided to start budgeting immediately after one small purchase.
Higher yields reflect a resilient economy, not necessarily the start of a punishing tightening cycle. That could be a favorable backdrop for bond investors.