<Click on chart for larger image> Real Time Economics (WSJ Blog) – Niall Ferguson’s (Mostly) Comforting History of Central Bank Balance Sheet Expansions Niall Ferguson, the Harvard University historian, has a message for those who fret about the size of the Federal Reserve’s balance sheet: Don’t worry too much. In a paper presented at the… Continue reading A Historical Look At Central Bank Balance Sheets
The New York Times – A Do-Nothing Congress? Well, Pretty Close After a burst of legislative activity in the past decade, representatives in the House are now proposing fewer bills. This House is on track to produce the lowest number of legislative proposals since the Clinton administration. Through mid-May, representatives introduced 18 percent fewer bills… Continue reading Regulation & The Markets
The Financial Times – Bond investors borrow to boost returns This year’s extended run of low yields and meagre risk premiums in the bond market leaves investors with a tough choice; they can either accept a very low return or rely on borrowing money to enhance their income. Investors are increasingly seeking the latter option… Continue reading The Carry Trade
The Financial Times – Paper money is unfit for a world of high crime and low inflation Abolishing physical currency would achieve two valuable objectives, writes Kenneth Rogoff Has the time come to consider phasing out anonymous paper currency, starting with large-denomination notes? Getting rid of physical currency and replacing it with electronic money would… Continue reading Kenneth Rogoff Argues For A World Without Paper Money
Conference Call Presentation/Charts of the Week Audio [audio:https://www.biancoresearch.com/bianco/SubscriberArea/052914.mp3|titles=Conference Call ] Topics Covered This Week Include: Falling Yields The Bond Rally In Perspective Sentiment Is Bearish Mutual Fund Movements 5-Year Treasury CoT Report 10-Year Note CoT Report Eurodollar CoT Report Foreign Purchases Of Bonds No Volatility US Economy World QE Stock/Bond Relationship Earnings Are Not Good… Continue reading Conference Call Presentation/Charts of the Week
Comment Now that 490 of the S&P 500 companies have reported earnings, we know that roughly 70% beat their earnings estimates. This can be seen in the chart below. The second chart shows the growth rate of earnings. Analysts will now begin to focus their attention on next quarter’s earnings season, both offering and revising… Continue reading One Final Q1 2014 Earnings Season Update
Comment Jim Bianco was CNBC yesterday with David Rosenberg discussing the bond market. To view the interview, click on the image above. To view any of our recent interviews, click here. Bloomberg Businessweek – Bond Market Vigilantes Are Very, Very Quiet The bond market punishes any government that lets inflation get out of control by… Continue reading Discussing The Bond Market
<Click on chart for larger image> MarketWatch.com – Home Prices Rise in March According to the S&P/Case-Shiller Home Price Indices “Despite signs of decelerating prices, all cities were higher than a year ago and all but New York were higher in March than in February. However, only Denver and Dallas have set new post-crisis highs… Continue reading Home Prices Rise, But At A Decelerating Rate
<Click on chart for larger image> MarketWatch.com – Here’s the real reason gold is falling Opinion: The gold market is still in the process of sliding to a new low Why aren’t the gold bulls more discouraged about the yellow metal’s weakness? One possible reason is the notion that gold normally experiences seasonal weakness in… Continue reading Gold
The Wall Street Journal – New Fund Stars Ride Junk Bonds to the Top The U.S. Treasury Department has warned that large holdings at the big funds may pose a systemic risk to financial markets. The managers climbing into the top echelon include Mr. Gundlach, who founded Los Angeles-based DoubleLine, and Robert Lee of Lord… Continue reading Bond Fund Performance
Reuters – Pimco rehires McCulley, this time as chief economist and public face Pimco said on Tuesday it has rehired Paul McCulley, who was previously a portfolio manager and the bond giant’s top analyst of the U.S. Federal Reserve’s policies, in the latest management change after the departure of the firm’s chief executive Mohamed El-Erian… Continue reading McCulley’s Back