Mixed Up Market as Oil Slips and Bonds Dip

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The S&P 500 finished modestly higher as crude oil slipped over 5% on the day. With oil down, you would think that U.S. Treasury bonds would be up as the inflation monster is further tamed. If that was your thought process, you would be wrong!

While oil is only surface level analysis on the future of inflation, debt and deficits are much more structural. With the Treasury set to borrow over $500B dollars in the fourth quarter of 2024, the inflationary pressure can’t be set aside with a 5% decline in oil prices.

What is the bottom line with a little over a week until election, runaway spending and geopolitical risk, take the money and run!

Let’s look at how we can do that…

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