The Financial Times – Martin Sandbu: Call for Fed reform misses its mark Higher inflation target does not address the real shortcomings Finally, calls for a higher inflation target distract attention and energy from pushing for other, more important changes at the Fed. Above all, the focus must be on the fact that the Fed… Continue reading Rethinking The Fed’s Inflation Target And The Balance Sheet
The Financial Times – Sleepwalking towards a chaotic Brexit The likelihood that there will be no deal is now even higher than before the election The least bad option would probably be to accept virtually all the EU’s terms of divorce, plus a lengthy post-2019 period of transition within the single market and customs union, followed… Continue reading Brexit
Business Insider – GUNDLACH: Traders and speculators in the market should be raising cash right now Traders and speculators in the stock market should be raising cash “literally today”; Gundlach forecasts a lower stock prices this summer. Long-term investors, however, should be able to weather a pullback in stocks.
MarketWatch – Caroline Baum: Even superior beings can’t comprehend what the Fed is up to The Fed’s preferred inflation measure, the personal consumption expenditures price index, breached the 2% annual target only once in the last five years this past February before ebbing to 1.7%. If 2% is a serious target, then President Donald Trump might… Continue reading Attempting To Understand The Fed
Bloomberg Business – The Global Economy Is Rebounding, But There’s One Big Problem Emerging markets, led by China, have propelled world growth There’s a dark cloud building behind the world’s best period of synchronous growth among developed and emerging economies this decade — one that in time could rain down volatility in global markets. The problem,… Continue reading China’s Stable Economy And World Economic Growth
The Wall Street Journal – Wall Street Veteran Leads Search for Next Fed Chief Since taking office, the president and his advisers haven’t publicly questioned the Fed’s actions—including its decision to raise short-term interest rates in March. The Fed has also signaled it is likely to raise rates again at its two-day meeting that concludes Wednesday.… Continue reading Gary Cohn Is The Lead Candidate For Next Fed Chief
Bloomberg Business – Prepare Now for the End of the Bull Market Adjust your expectations for market turmoil before it occurs, not during or after the fact. The economy could go into a recession. Predicting a recession is no easier than predicting the peak in equities, but the majority of the worst stock market sell-offs throughout… Continue reading Preparing For The Next Recession
The Wall Street Journal – Treasury Secretary Backs Trump’s Comments on Government Shutdown Treasury Secretary Steven Mnuchin said Tuesday there could be circumstances under which a shutdown of the U.S. government would be a desirable outcome. Mr. Mnuchin, who was testifying before the Senate Budget Committee, was asked about President Donald Trump’s tweet earlier this year… Continue reading Mnuchin: At Times A “Good” Shutdown Is Needed
OPEN Net Positions – Is This The Reason Markets Are Bullish About Trump? Comment In our latest webinar, Jim Bianco discusses the Trump trade and how the pace of regulation under Trump has collapsed despite a unified government. While most point to Trump’s pro-business agenda as the main reason stocks have marched higher, this… Continue reading Is This The Reason Markets Are Bullish About Trump?
Wall Street Journal – Stocks Fall; Tech Shares Take Brunt Tech stocks were the S&P 500’s worst-performing sector for a second straight session but still are up 18% this year Some investors were selling tech shares to rotate into other areas of the market, such as beaten-down energy stocks, said Russ Koesterich, co-portfolio manager of… Continue reading Technology ETFs See Rising Outflows
The Financial Times – All markets are increasingly at risk’, Bill Gross warns In his monthly outlook. the Janus fund manager said “the real economy has been usurped by the financial economy,” meaning that investors and savers are increasingly turning to financial assets that have decoupled from the actual economy’s performance to generate returns. But Mr… Continue reading Risks are Deeply Connected, but Confusion Reigns