For the last few decades we have been in a low interest rate environment where deficit spending would not cause major issues. However, a 40-year high in inflation prompted the Fed to tighten monetary policy at a fast pace. Higher rates mean the cost of servicing U.S. debt will follow higher.
We have argued in the past that Cathie Wood and the ARK ETFs, headlined by ARK Innovation (ARKK), were arguably the most important manager/complex on Wall Street. After their outstanding performance in 2020, these funds have drastically underperformed.
How big are the Fed's holdings of bonds, notes, bills, TIPS, MBS, agencies, and FRNs in relation the outstanding market?
A long-term look at the dollar/pound exchange rate
Some interesting charts from our recent posts
Money continues to flow into money market funds. Banks are left with the option of raising deposit rates, which squeezes margins, or watching customers walk out the door.
The outperformance of tech stocks, specifically the Magnificent 7 stocks, in 2023 created a wide dispersion in the composition of the equity market rally.
Today's topics include Jim discusses the FOMC meeting & inflation, what does a strong labor market really mean?, previewing tomorrow's payroll report, understanding Fedspeak, post FOMC reactions, TIPS as an inflation hedge, what happened with New York Community Bank?, you get debt & you get debt!, and a new made-up way to transfer risk
Jim Bianco joins Bloomberg to discuss today’s the Ramifications of Record High Equities, today’s FOMC Meeting, Bond Market Volatility, the Bank of Japan & the Path of Inflation with Manus Cranny and Kate Moore.
Today's topics include timing the rate cuts, rates tend to fall around FOMC days, the Treasury's refunding announcement, the health of the labor market, will additional supply keep oil prices under $100 forever?, U.S. stocks vs. the rest of the world, housing price gains slowing, commercial real estate outlook not getting any better, and Evergande collapse isn't the end of China's problems