Friday, September 29, 2023

16 year cycle

 Are we on a loop, repeating events from 16 years ago?  Of course not exactly, but I think things are uncannily close.

Here are the interest rates from 9/28/2007 and 9/28/2023:

Date		6 Mo	1 Yr	3 Yr	10 Yr	30 Yr
=========	=====   ====	====	=====	=====
09/28/2007	 4.09	4.05	4.03	4.59	4.83
09/28/2023	 5.53	5.46	4.83	4.59	4.71

Source: https://home.treasury.gov/resource-center/data-chart-center/interest-rates/TextView?type=daily_treasury_yield_curve&field_tdr_date_value_month=202309

The 10 years rates are exactly the same.

Other maybe parallels:

President:    George W Bush vs Joe Biden

War:    Iraq vs Ukraine

Housing Market:  The housing market peaked sometime in 2006. The credit markets froze in the summer of 2007, and a housing crash began in August 2007.  vs Now: The housing market peaked about May 2022.  

Interest Rates:  The Fed rose rates to 5.25% in July 2006 where they stayed until Sept 2007 when they dropped to 4.75. And now the Fed rose rates to 5.25% in July 2023.  

Update10-year and 30-year Treasury yields rise to their highest levels since 2007

Business Cycle:  The Great Recession began in December 2007 and lasted until June 2009.

Stock Market Peak:  Oct 9, 2007:  DJIA peaks at 14,164.  Jan 4, 2022: DJIA hits all time high of 36,800. Aug 1, 2023: DJIA hits 2023 peak of 35,679.

Update: Treasury 10-Year Yield Breaches 5% for First Time Since 2007

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