There are a lot of ways to define “inflation.” There are a lot of ways to measure “inflation.” Economists, the Fed, and Wall Street define “inflation” to apply only to consumption goods, things we actually use and consume. Hence the name “Consumer Price Index.” The purpose of the CPI was never really to measure “inflation” however….
In December 1996, with the support of Chairman Alan Greenspan, the Federal Reserve Board issues a precedent-shattering decision permitting bank holding companies to own investment bank affiliates with up to 25 percent of their business in securities underwriting (up from 10 percent). This expansion of the loophole created by the Fed’s 1987 reinterpretation of Section 20…
Following our discussion of perhaps the most successful (and/or most risky) trades of the last decade – that of shorting the front-month VIX – we were less than surprised that (VXX)-the (VIX) ETF has collapsed to new record-lows this morning. A snap higher in VIX has been met by an avalanche of vol selling and, as…
It’s summertime and the stock market has taken a vacation, and it’s unclear when prices will return from a seven month break. It may seem like a calm sunset walk along the beach now that Greek worries have temporarily subsided, but concerns have shifted to an impending Federal Reserve interest rate hike, declining commodity…
by Chad Farrington, CFA, Senior Portfolio Manager, Head of Municipal Credit Research and Matthew Stephan, Senior Municipal Credit Analyst, Columbia Threadneedle Investment The first payment default on Puerto Rico governmental debt is likely to occur Monday, August 3, when the Commonwealth is expected to miss a payment on debt issued by its Public Finance Corporation (PFC)….
If there are words to characterize the precious metals markets for July, it would be “divergences” and “shortages.” There was heavy selling in the leveraged futures market and extraordinary buying demand and shortages in physical coins, rounds, and bars. Despite turmoil surrounding Greece and a huge sell-off in Chinese equities, traders dumped wheelbarrow loads of…
I pointed out on my Tastytrade show last Thursday that bonds looked poised for a lift-off. Well, once the modest resistance (tinted in green) was breached, it was off to the races. Interest rates seem destined lower (obviously). (ZBU5=ECBOT 30 Year Treasury Bond Future September 2015)
The New York Times ran a surprising op-ed on Sunday highlighting some structural problems in the US economy. The issues raised in the column titled “We’re Making Life Too Hard for Millennials” by Wall Street executive and NYT contributing opinion writer Steven Rattner won’t surprise our regular readers. In fact, you will find the analysis…
Noble Energy, Inc. (NBL – Analyst Report) reported adjusted earnings of 26 cents per share in the second quarter of 2015, surpassing the Zacks Consensus Estimate by 333.3%. However, quarterly earnings slumped 70.5% from the prior-year figure due to a significant decline in commodity prices. On a GAAP basis, the company incurred a loss of…
