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The Fed Is Not Going To Raise Interest Rates
2026-05-20 · via All Articles on Seeking Alpha

Summary

  • I see rising long-term Treasury yields as a compelling entry point for fixed income investors as the 10-year approaches 5%.
  • Despite fears, I do not expect the Fed to hike rates; futures indicate a cut is more likely in March next year.
  • Elevated long-term rates should slow economic growth and inflation, creating value opportunities in both Treasuries and equities.
  • I recommend maintaining high cash levels to capitalize on potential drawdowns and narrow windows for attractive investments.
  • This idea was discussed in more depth with members of my private investing community, The Portfolio Architect. Learn More »
Increasing of coins stacking with arrow and percentage on wooden table for financial planing and interest rate growth policy concept.

Dilok Klaisataporn/iStock via Getty Images

Yesterday, stocks fell for the third day in a row. With the earnings season largely concluding after Nvidia’s earnings report this afternoon, investors are starting to focus on the daunting economic data in front us. As war-induced inflationary pressures continue to build steam with

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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Lawrence Fuller is the Principal of Fuller Asset Management (FAM), a state registered investment adviser. He is also the manager of the Focused Growth portfolio on the copy-trading platform Dubapp.com. Information presented is for educational purposes only intended for a broad audience. The information does not intend to make an offer or solicitation for the sale of purchase of any specific securities, investments, or investment strategies. Investments involve risk and are not guaranteed. FAM has reasonable belief that this marketing does not include any false or material misleading statements or omissions of facts regarding services, investment, or client experience. FAM has reasonable belief that the content as a whole will not cause an untrue or misleading implication regarding the adviser’s services, investments, or client experiences. Past performance of specific investment advice should not be relied upon without knowledge of certain circumstances or market events, nature and timing of investments and relevant constraints of the investment. FAM has presented information in a fair and balanced manner. FAM is not giving tax, legal, or accounting advice. Mr. Fuller may discuss and display charts, graphs, formulas, and stock picks which are not intended to be used by themselves to determine which securities to buy or sell, or when to buy or sell them. Such charts and graphs offer limited information and should not be used on their own to make investment decisions. Consultation with a licensed financial professional is strongly suggested. The opinions expressed herein are those of the firm and are subject to change without notice. The opinions referenced are as of the date of publication and are subject to change due to changes in market or economic conditions and may not necessarily come to pass.

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