Fed

Uncategorized, Weekly Update

The Fed gets bigger

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Published April 20, 2020

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Today’s front page of the Wall Street Journal carries the following stories: Jobless claims top an “unprecedented” 17 million, Fed unleashes its broadest ever array of programs, Coronavirus creates a “mountain of debt”, Saudis and Russia agree to oil production cut.  Those four topics encapsulate what markets have been wrestling with over the past month, and going forward.  We will undoubtedly spend more time in coming weeks on most of those.  This week, we are focused on the dramatically expanded role of the Federal Reserve.
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Uncategorized, Weekly Update

Paying the bank to hold your money

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Published July 26, 2019

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As we’ve noted many times before, the stock and bond markets since the financial crisis have been driven for the most part by the policies of the world’s central banks.  Central banks, such as the Federal Reserve in the United States (the “Fed”) and the European Central Bank (“ECB”), have been very sensitive to markets and have clearly sought to directly influence them.  There is no question they have been successful in this task.  Simply look back to December when U.S. markets were struggling.

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Uncategorized, Weekly Update

Some Say Market Risks Are Rising

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Published August 24, 2018

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In this week where the S&P 500 touched a new high, we thought it would be interesting to hear a more cautionary view. Below we reprint an excellent overview of the recent issues in Turkey (along with comments on the general economy and market) from the folks at Charles Schwab. (more…)

Uncategorized, Weekly Update

Higher Interest Rates Won’t Kill the Stock Market

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Published March 2, 2018

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This week we share some good information from a webcast given by Charlie Bilello of Pension Partners. The first chart shows the downward trend of the 10-year U.S. Treasury yield. Note the green arrows as the yield hits the upper portion of the channel. We are sitting right at the top of the channel. Do we want to see yields break through to the upside? (more…)

Uncategorized, Weekly Update

Investors Begin Worrying About an Inverted Yield Curve … and Recession

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Published January 12, 2018

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With the global economy firing on all cylinders it’s hard to believe investors would find anything to worry about. But they have. For years now investors have wondered when and how the era of near-zero interest rates would end. Are we now on the cusp of seeing how the backside of the Fed’s unprecedented monetary policy easing impacts markets? (more…)