ASPHALT ANSWERS
An inversion of the yield curve . What is the yield curve ? Glad you asked as I had to study up on it myself . Basically , it ’ s when long term interest rates are less than short term rates . This happens when investors are nervous about the future and expect short term rates to fall . In easy terms , typically the longer you invest , the higher the interest rate you receive in return . When an inversion occurs , your return on short term investing exceeds long term investing . We ARE currently in an inverted yield curve at -1.15 %.
We ARE currently in an inverted yield curve at -1.15 %.
Manufacturing activity is brisk , despite the supply chain issues
Notice that one economic factor that is not a red flag is interest rates . Interest rates are as high as they have been since 2008 . Rates are going up but make no mistake , they are not high . Ask anyone who borrowed money in 1981 how they view today ’ s rates . Those rates were above 16 % and were still in double digits by the end of the decade . The reason , runaway inflation . While inflation is a hot topic today , its not near the rate of the 1970 ’ s and 1980 ’ s . Apologies to those looking for tips on de-winterizing their equipment . We ’ ll re-visit that later . The economy is in the strangest position I have seen it since 1986 or 2008 . My advice is very simple , judge for yourself , make solid economic decisions based on what you see outside your window , not what some economist ( or author of an article in an asphalt magazine ) tells you how to react and keep serving the local industry in your area . Keep your head down , heels up and feet turning . We ’ re in the greatest industry in the nation-improving the infrastructure of our great country . Oh , and don ’ t forget to follow your manufacturer ’ s recommendations for service .
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Brian Hall , LeeBoy Territory Manager . He can be reached via email at Brian . Hall @ Leeboy . com .
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