<Click on cartoon for larger image> I’d be much too nervous to stay in a hammock if somebody were promising me yields of at least 8% https://t.co/n4UXFmprrl — Jason Zweig (@jasonzweigwsj) September 10, 2016 <Click on picture for larger image>
Comment Jim was on CNBC with Rick Santelli yesterday discussing the ECB meeting and interest rates. To view the interview, click on the image above. To view any of our recent interviews, click here. At the Bank of Japan’s July 28 meeting, BoJ chief Kuroda disappointed the markets with less stimulus (QQE) than expected. He also… Continue reading Have Central Banks Reached The Outer Edge Of The Universe Of Extreme Monetary Policy?
Bloomberg.com – Fed’s Rosengren Says ‘Gradual Tightening’ Will Prolong Recovery Boston Fed chief says risks ‘becoming increasingly two-sided’ Says monetary policy can’t precisely manage overshooting goals Federal Reserve Bank of Boston President Eric Rosengren moved more firmly into the camp of hawkish policy makers, warning that waiting too long to raise interest rates threatened to overheat… Continue reading Is A September Hike Back On The Table?
<Click on chart for larger image> CNBC – KKR: Fed to keep rate below 1% through at least 2020 The Fed will be staying lower for longer — a lot longer, in fact, if a forecast from a major private equity player is accurate. With the market wondering whether the U.S. central bank will hike rates… Continue reading 1% Rates Through 2020
<Click on chart for larger image> Bloomberg Business – Treasury Swings Muted as Chances of Fed Rate Increase Diminish A gauge of Treasury-market volatility hovered around the lowest levels seen in more than 18 months as the chances of an interest-rate increase by Federal Reserve officials at September’s meeting receded. The Bank of America Merrill Lynch MOVE… Continue reading Bond Market Volatility
<Click on chart for larger image> The Wall Street Journal – WSJ Survey: Economists Still See September Fed Rate Move as Unlikely About 74% expect central bank will hold off on raising rates until December Economists appear unmoved by Federal Reserve officials’ recent comments indicating they will consider raising short-term interest rates this month. A Wall Street… Continue reading Economists Predict
Barron’s – Randall W. Forsyth: Fed Gets Caught in the Presidential Crossfire Trump flip-flops on whether Yellen is too easy. Clinton calls Fed off-limits, unlike in her ‘93 Greenspan photo op. The Federal Reserve had mostly managed to avoid being a subject in this year’s presidential race—until this week. Republican Donald Trump charged the central bank led… Continue reading The Fed And Politics
Bloomberg Business – Asset Contagion Worse Than 2008 as Markets Held Hostage to Rates Credit Suisse keeps track of the performance of various assets through 21 exchange-traded funds and employs a model called principal component analysis to define the degree to which markets are influencing each other. Its contagion index reached a record 75 percent in… Continue reading More On Low Asset Returns
<Click on chart for larger image> Bloomberg.com – Biggest Oil Traders See Another Year of Pain as Glut Endures Bearish mood engulfs the Asia-Pacific Petroleum Conference Oil traders say OPEC freeze won’t be enough to boost prices Even when the market moves into a deficit, it will have to work through millions of barrels accumulated as… Continue reading Crude Inventories
Bloomberg.com – Gundlach Says It’s Time to Get Defensive as Rates May Rise DoubleLine CIO says rates bottomed in July and are turning up His flagship DoubleLine Total Return Fund is up 4% in 2016 DoubleLine Capital Chief Investment Officer Jeffrey Gundlach said it’s time for fixed-income investors to prepare for rising interest rates and higher… Continue reading Gundlach Speaks
Barron’s – Albert Edwards: No Alternative to Stocks? Just Wait For the Next Bear Market One thing we constantly hear from clients is that despite equities being very expensive, they are the “cheapest“ of a very expensive array of assets, all inflated by super-loose monetary policy. Bonds (both corporate and government) and property are seen by… Continue reading More Scary Talk
<Click on graphic for larger image> MarketWatch.com – ‘Zombie’ foreclosures decline across the country, except in some states where they’ve built strongholds As the foreclosure crisis recedes, some unwanted consequences continue to haunt neighborhoods around the country. “Zombie” foreclosures — those properties that are currently in the foreclosure process but vacant — fell again in the third… Continue reading Zombie Foreclosures