Welcome to the beginning of the end of dollar strength. I say that because of what the Federal Reserve told the world this week. As expected, the Fed removed the word “patience” from the official policy language it has been using for years to describe its approach to timing America’s first interest-rate increase in nearly…
Bubble on. Have a pleasant weekend.
The only asset class that made any sense in today’s quad-witching was the 10 Year, whose yield did precisely what it should do in a world in which the Fed slashed the economic outlook 2 days ago: it tumbled. The 10Y is almost back to the “kneejerk” shock levels following Yellen’s dramatic slashing of the…
TM editors’ note: This article discusses a penny stock and/or microcap. Such stocks are easily manipulated; do your own careful due diligence. Not too long ago, if you asked any energy insider where in the world the most exciting energy hot spot was, you would have gotten a surprising answer: Africa. It’s true; Africa was a…
Dear Diary, The big news this week was that the Fed dropped its pledge to be “patient” in raising interest rates. The Fed wants to get the market used to the idea of higher rates sometime in the not so distant future. But just so you are clear on how valuable this “forward guidance” is,…
Curve Watchers Anonymous is investigating the yield curve following Janet Yellen’s exceptionally dovish FOMC announcement on Wednesday. Yield Curve 2-yr, 3-yr, 5-yr, 10-yr, 30-yr 30-year in black and red 10-year in orange 5-year in blue 3-year in green 2-year in purple Change From Year Ago Above rate table from Bloomberg. Futures Suggest No Rate Hike…
by Christopher Pavese, The View from the Blue Ridge. A few more thoughts on recognizing where we are in the cycle, illustrated by SG: The US has now “enjoyed” its longest bull market since WWII. Over this period, the S&P gained over 200%, making it the third-strongest six-year run since 1900. The two others, 1929…
Why we need to stop ignoring the U.S. debt problem? Video Length: 00:13:14
Illinois pension plans are in extremely dire shape, especially given the stock market returns over the past few years. The Illinois Spendaholics have proposed a huge array of tax hikes to make up the shortfall. Ben VanMetre at the Illinois Policy Institute explains in this guest post. Illinois politicians propose $100B in tax hikes over…
As negative interest rates spread from Switzerland, Japan and Germany to the rest of the developed world, people with money to invest face some life-defining issues. Retirees who need to generate 6% to avoid dipping into principal can’t get there with bank CDs. Pension funds that have promised an 8% return in order to meet…
