Hockey great Wayne Gretzky credits his dad with telling him to “skate where the puck is going.”
And like many sports cliches, this one has been appropriated by business-types for years. Just because the phrase is overused, though, doesn’t make it any less valid.
Just ask an investor.
There is little doubt where the Federal Reserve’s target interest rate is going in the week ahead — up. And expectations have been rising for more rate hikes in the months ahead.
Bond market interest rates are moving up along with these expectations, pushing bond prices down. The yield on the 10-year U.S. government bond is near its highest level since mid-December. The average 30-year fixed-rate mortgage is at its highest level of the year, according to Freddie Mac. The cost of borrowed cash for auto loans and credit cards also has been rising.