Published on October 14, 2026

October Monthly Portfolio Pulse - Being Normal

Despite rising Treasury yields and renewed interest rate concerns, strong economic growth and persistent inflation support the view that higher rates reflect normalization rather than distress, keeping equities attractive on a tactical basis.

Written by Dan Phillips, CFA

October Monthly Portfolio Pulse - Being Normal

Investor attention has shifted to interest rates as the 10-year U.S. Treasury yield moved from 4.63% to 5.24% over the span of six weeks – its highest level in nearly 20 years. Concerns are mounting that the recent jump reflects investor dissatisfaction over higher debt loads. We think it is more driven by fundamentals – and is part of the normalization process that began in 2021, after a decade-plus of zero interest rate policy (ZIRP). Economic growth has been strong and inflation is stubborn, forcing the Federal Reserve to hike rates in September. But despite higher rates, ongoing solid fundamentals keep us tactically overweight equity risk.

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