Bloomberg View – Komal Sri-Kumar: Soaring Bond Yields May Be Short-Lived It is important to ask why recent history may repeat itself in the weeks and months to follow. There is a low probability that the Fed and the Trump administration would be able to successfully implement their policies. And if the measures do not… Continue reading Bond Yields
Financial News – El-Erian warns of ETF contagion risks The proliferation of cheap exchange traded funds in the financial system has created a “huge risk of contagion”, the chief economic adviser at German insurer Allianz, Mohamed El-Erian, has warned. El-Erian, who was chief executive and co-chief investment officer at bond giant Pimco until 2014, told attendees at… Continue reading ETF Contagion Risks
The Financial Times – Bond funds in demand despite prospect of rising US rates Inflows into junk hit a 10-week high of $1.36bn US bond funds attracted fresh money this week, with the prospect of rising interest rates failing to deter investors. Investors poured $3.2bn into US bond funds in the week ended Wednesday, according to… Continue reading Bond Funds Continue To See Inflows
The Wall Street Journal – Should We Move to a Mostly Cashless Society? The role of cash in the U.S. economy is shrinking, thanks to technology that allows for so many other ways to pay for things. American consumers used cash in 32% of all retail transactions in 2015, down from 40% in 2012, according to… Continue reading Cash Is King…For Now
Bloomberg Business – Investors Aren’t Worried About a Stock Market Correction U.S. equity investors have gotten complacent—or smart. Investors expect the stock market to plunge. Their response: Whatever. A little more than half of U.S. investors anticipate a decline this year that will wipe out “significant gains,” according to the latest Wells Fargo/Gallup poll results. That’s fully 54 percent of the respondents, though down… Continue reading Stock Investors Have Gotten Complacent
Bloomberg View – Ben Carlson: Some Market Myths Hurt Investors Bonds always lose money when interest rates rise. Bond prices and interest rates are inversely related. When one rises, the other falls, and vice versa. But this relationship ignores the income portion of the total return an investor earns in bonds. For example, looking at five-year Treasury… Continue reading Market Myths
The Wall Street Journal – The World’s Stock Markets Are Overvalued, Except in One Region Stock valuations are flashing a warning sign in many parts of the world, with one big exception: Asia. This year’s global rally, which has lifted nearly every prominent stock index, has also made it more difficult for equity investors to find… Continue reading Look To Asia For Undervalued Markets
The Financial Times – BoE close to interest rate hikes in November – Carney Mark Carney confirmed that the Bank of England is close to raising interest rates at its November meeting on Friday, saying that they would rise so long as there was not a sudden and unexpected deterioration in economic data. Using similar language… Continue reading Carney Sees A BoE Hike In November
The Hill – Fox Business tops CNBC for fourth consecutive quarter Fox Business continued its winning streak against rival CNBC by drawing more viewers for the fourth consecutive quarter, according to Nielsen Media Research. Fox Business, which launched almost 10 years ago, averaged 187,000 total viewers, while CNBC delivered 152,000, marking the lowest viewership since 1991… Continue reading Business Television Ratings
Reuters – U.S. tax plan puts reflation trade back on investors’ radar It’s back – at least for one day. The “reflation,” or “Trumpflation,” trade that drove financial markets after Donald Trump’s surprise U.S. presidential election victory last November made a comeback on Wednesday as the unveiling of Trump’s long-promised tax overhaul revived bets that markets… Continue reading Investors are Taking Notice of Growing Optimism for Tax Reform
Business Insider – The dollar climbs to its highest level in over a month The US dollar index was up by 0.7% at 93.57 at 8:59 a.m. ET on Wednesday morning, its highest level since August 23. The index’s climb follows Fed Chair Janet Yellen’s comments Tuesday in Cleveland. “It would be imprudent to keep monetary policy on… Continue reading What Moves with the Dollar?