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Archive for the Bond Market Category

The real impact of a decade of low interest rates – MarketWatch 11-05-15

Salient to Investors: L.A. Little at Technical Analysis Today writes: We have created mountains of debt to solve our existing debt problems. Debt creation causes currencies to devalue and prices of most financial assets to rise for at least a while until the next country does the same. Bonds are slumping just

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Here comes your biggest melt-up for stocks since 1998 – MarketWatch 10-30-15

Salient to Investors: Nour Al-Hammoury at ADS Securities expects stocks to drop in November on the fears of a rate hike in December until the Fed changes its mind again. Steve Sjuggerud at the Daily Wealth said stocks will soar over the next 18 months because we reached an extreme of fear

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Wall Street’s Latest Bounce – Ostrich Economics At Work – David Stockman’s Contra Corner 10-20-15

Salient to Investors: David Stockman writes: The price of financial assets is now artificial and wildly inaccurate. $300 trillion of global finance cannot remain stable much longer. Bulls believe the Fed is on hold until at least next March, while Wall Street is projecting S&P 500 earnings of $130 per share on an ex-items basis for

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We’ve Seen This Picture Before – Global Markets Down $13 Trillion Already – David Stockman’s Contra Corner 09-29-15

Salient to Investors: David Stockman writes: The global economy is drastically overbuilt on $225 trillion of debt. The 2008 collapse was quickly arrested by unprecedented central bank money printing, which is unavailable this time around because interest rates cannot go any lower and QE does not stimulate economies at peak debt, and only inflates financial

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Looking for the lifeboats – The Economist 09-19-15

Salient to Investors: Both equities and government bonds are overvalued but are unlikely to fall in tandem. Long-term investors should ignore short-term market declines because over the long-term, asset prices rise – US equities overcame the dotcom bubble and 2008 financial crisis to reach record highs in 2015. However, equities could be

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The zero rate trap – The Economist 09-18-15

Salient to Investors: No Fed tightening was a sensible decision. The Fed is in a trap: low interest rates have raised global equity markets, whose collapse in August helped in preventing the Fed from raising rates. Most British homeowners have variable rate mortgages so while interest rate cuts staved off a potential

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Three economic crises, cutting rates and banning cash – The Economist 09-18-15

Salient to Investors: Andy Haldane at the Bank of England said: Inflationary reputation is hard-earned and easily lost central bank promises to re-anchoring the rate at some future point is damaging to macro-economic stability. Further QE, especially making it permanent, risks blurring the boundary between monetary and fiscal policy and hurts central

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US central bank leaves interest rates unchanged – BBC News 09-17-15

Salient to Investors: The Fed’s forecast for slow rate increases probably means 0.25% in 2015, 1% in 2016, and 1.25% in 2017. Karissa McDonough at People’s United Wealth Mgmt said economic uncertainty and the slowdown in China drove the Fed’s decision to keep rates at zero, because the US has been linked globally

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Inflation Targeting Unmasked – The August CPI Crushed The Case For ZIRP – David Stockman’s Contra Corner 09-17-15

Salient to Investors: David Stockman writes: The August CPI gives the Fed an excuse to keep shoveling free money into the casino. No Fed rate increase would be a clear indication of its fear of reining in Wall Street’s greedy and gamblers and that Keynesian central banking in the last two decades

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David Stockman Interview On Yahoo – The Fed Painted Itself Into A Corner, Confidence In The Casino Is Headed For A Fall – David Stockman’s Contra Corner 09-17-15

Salient to Investors: David Stockman said: The Fed is on a jihad against retirees and savers. 80 months of ZIRP has not helped the economy because we are at peak debt, with US business $12 trillion in debt, versus $10 trillion before the crisis. The massive money printing has all

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