We have a healthy macroeconomic debate going on at my hedge fund these days. It’s about interest rates. Our chief economist, Mike Dooley, thinks the US economy is about to catch fire, and sees a real chance of 10-year rates over 3% by year end on the back of an imminent Fed hike in rates. While Dr. Dooley has always been a perma-bull, this recent bout of optimism has me thinking he spent too much time in Golden Gate Park on April 20th.
Under the haze of smoke, they began to shout “10-year Treasuries at 3%!”Read more