Interest Rates: It’s Not Only Absolute Level

It’s not solely the level of interest rates, volatility is also important, a point I have made on multiple videos on Jae’s Corner YT vids. So far this year, that interest rate volatility (MOVE) has declined, look at the pink line over the past 3-4 months.

Because of this, the denominator has taken the back seat, citizens of Numeratorville get control of the narrative, allowing risky assets to move higher to start the year. Not difficult to understand, once the correct order of operations is understood.