Bloomberg Markets – It’s Getting Hard for S&P 500 to Elude Bond Market Violence “Rates moving higher is a symptom of the sentiment in the market shifting to where they are coming to the realization that quantitative easing is on the way out,” said Marty Mitchell, an independent rates strategist and formerly head government bond trader… Continue reading More On Dividend Yields vs Interest Rates
The Financial Times – Hazards lie in wait for Fed’s incoming chief Powell must balance low inflation against signs of overheating markets as he takes reins from Yellen Yet ahead of Ms Yellen’s final policy meeting this week, officials have been highlighting the hazards Mr Powell’s new regime will face balancing continued low inflation readings against… Continue reading Here Comes The Powell Era
The Financial Times – Saudi Aramco indecision shrouds world’s biggest IPO in uncertainty Questions swirl about how and where the oil producer will be sold Indecision at the highest levels of government about Saudi Aramco’s planned IPO is causing frustration among company executives and financial advisers, shrouding what has been billed as the biggest stock market… Continue reading Saudi Aramco
The Financial Times – Global bond market sell-off gains pace Yields move inversely to prices, and the three biggest exchange-traded bond fund, which collectively hold more than $127bn, have as a result suffered their biggest monthly losses since the turmoil that struck fixed-income markets in the wake of Donald Trump’s presidential victory in November 2016. “It’s… Continue reading Bond Market Selloff
Bloomberg View – Barry Ritholtz: Why Markets Love Trump’s Tax Cuts Put aside partisan feelings and recognize that the economy is getting a major stimulus. Regardless of whether you like President Donald Trump, or what is happening to the Republican Party, or whatever you may think philosophically about the new tax cuts, none of it serves as… Continue reading Tax Cuts Work!
The Wall Street Journal – Why Is the Dollar Weak? Because the Rest of the World Is Strong American companies seem to be heeding Donald Trump’s sales pitch—they are rushing to announce investments in the U.S. thanks to tax cuts and deregulation. Yet the dollar is having its worst 12 months since 2011, giving back half… Continue reading More On The Weak Dollar
The risk-on sentiment, rising Treasury yields and a hint of volatility have investors in riskier debt markets turning their sights toward the leveraged loan market.
Bloomberg – Don’t Bet Against the Fed’s Rate Forecast The central bank is likely to stick to three hikes in 2018. In short, don’t yet bet against the Fed’s 2018 rate forecast from either side. The current pace of economic activity will keep the Fed focused on rate hikes even with inflation on the low… Continue reading The Tide is Turning for Relationships Between Central Banks, Inflation, and Volatility
View PDF Summary So far 138 (28%) of the S&P 500 companies have reported Q4 2017 earnings for a growth rate of almost 13%. Full-year 2018 earnings estimates are approaching 19%. Combined with 2017 earnings, the growth rate over the two-year span is now estimated to be roughly 33%! This week we will get a… Continue reading An Earnings Update – The Great Quarter Continues
Comment Jim Bianco was a guest host on Bloomberg TV on Friday morning discussing a variety of topics. Two of his segments are highlighted below.