CNBC – Fed’s Fischer says near-zero rates, QE may be the future It is not the first time a Fed official has openly expressed concerns about an underlying decline in U.S. economic potential, or fretted that the crisis shifted savings and investment patterns in a damaging way. Over the past year in particular there has been a… Continue reading Fed’s Fischer Is Concerned About The Economy
<Click on chart for larger image> AQA – Peter Forbes: Expecting Narrower TIPS Breakeven Spreads TIPS breakeven spreads surged wider in September, particularly shorter maturities. Most of the gains came late in the month on the heels of the FOMC’s decision to hold at the September meeting. The FOMC further lowered longer-term expectations for growth,… Continue reading Expecting Narrower TIPS Breakeven Spreads
The Financial Times – There is no game-changer that will end the bond bull market Connectivity between markets is increasing … Fourth, as the above shows, we are thinking globally because the markets are increasingly interconnected. To enhance returns when yields are low, money flows across borders. We can see that a lot of money has… Continue reading The Bond Bull Market
Business Insider – Here’s why the US won’t be adopting negative interest policy anytime soon Many investors express concern that if the U.S. economy falters, the Federal Reserve will have to resort to negative interest rates. While it can’t be ruled out, according to Fed Chair Janet Yellen, we don’t anticipate it will happen here for… Continue reading Why The Fed Will Not Turn To A Negative Rate Policy
<Click on graphic for larger image> Bloomberg Business – BofA: Markets Are Complacent About the Risk of a Recession Next Year A recession looms in 2017 if the U.S. economy maintains its current course, according to Bank of America Merrill Lynch. Some of the bank’s favorite early-warning signs are signalling “evidence of an imminent recession,” according to a team led… Continue reading Economic Indicators And The Risk Of A Recession
The Wall Street Journal – Risk of Deglobalization Hangs Over World Economy The worry is that politics, economics and finance are combining in a way that threatens to throw globalization in reverse, Simon Nixon writes One of the biggest puzzles in the global economy right now is the slowdown in trade. Since 2012, global trade has… Continue reading Deglobalization
Charts of the Week Topics Covered This Week Include: “Household” Equity Ownership The Correlation Between Stocks vs Bond Relationship The Correlation Between Stocks vs Bond Relationship – 2 Earnings Estimates More Doubt On Capping Oil Output Money Market Funds & Quarter-End Window Dressing Shorting Corporate ETFs A Look At Saudi Arabia’s Holdings Of U.S. Treasuries… Continue reading Charts of the Week
<Click on chart for larger image> MoneyBeat (WSJ Blog) – Households Own More of the Stock Market These Days Who owns the U.S. stock market? Increasingly, the answer is households. They owned 37% of the U.S. equity market at the end of June, the most since 2007, according to an analysis of Federal Reserve data by Goldman… Continue reading “Household” Equity Ownership
<Click on chart for larger image> CNBC – Passive investing is on a tear, and for very good reason Ever since 1975, when then-CEO John C. Bogle created the first index fund for retail investors at The Vanguard Group, there’s been a raging debate about whether active management is worth paying for. Investors seem to… Continue reading Active vs. Passive Funds
<Click on chart for larger image> Bloomberg.com – Bond ETF Assets Climb to Record as Investors Seek Out Liquidity Holdings in bond exchange-traded funds climbed to records in Europe and the U.S., spurred by ease of trading and the lure of higher yields in emerging markets. Bond ETFs now manage $428 billion in the U.S. and… Continue reading Bond ETF Flows
<Click on chart for larger image> MoneyBeat (WSJ Blog) – Hedge Funds Pile into Bearish Bets on the Pound The battered British pound is proving a boon for some hedge-fund managers, with the number of bets against the currency at a six-month high, according to latest figures. Sterling plunged to a three-decade low of $1.2737… Continue reading Betting Against The Pound