This week’s post touches on renewed equity market volatility, sky-high valuations, the retail trading frenzy, record-low mortgage rates, the coming wave of US Treasury supply, disruptions in the gold market, and more. Click here to read the entire post on LinkedIn.
(LinkedIn) Macro Musings: Global Markets Defy Gravity
If you had a crystal ball at the start of the year, it might not have helped in investment decisions. If you received advanced notice that the first half of 2020 would include a global pandemic, 40 million unemployed Americans, a drop in corporate earnings of more than 30%, a wave of corporate bankruptcies and …
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(LinkedIn) Stimulus Meets Stagnation: What’s Next for the Economy and Markets?
You can lead a horse to water, but you can’t make it drink. In other words, you can give someone an opportunity but not force them to take it. A similar proverb may apply to consumers as states across the country attempt to restart their economies: you can open up a business, but you can’t make …
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(FORBES) Profits From Fed Balance Sheet Expansion Could Top $140 Billion
Assistance provided by the Federal Reserve does not come for free. Every program that is part of the balance sheet expansion earns a spread. Like all depository institutions, the spread is the difference between where it borrows money and where it lends. With its aggressive balance sheet expansion and interest rates pinned near zero for …
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(FORBES) Three Moves You Can Still Make If You Went Into The Crisis Fully Invested
Many people entered 2020 fully-invested in their investment portfolios. Fully invested does not necessarily mean 100% allocated to stocks. It means that you had an asset allocation mix that did not leave you with more than 5-10% cash. But fear not; you don’t need to be sitting on a pile of cash to take advantage …
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(FORBES) My Financial Advisor Wants Me To Do What?
Conversations between financial advisors and their clients are going to get more difficult in the coming months. With bond yields collapsing around the world, it is harder and harder to justify their role in long-term portfolios focused on total return. I can imagine the conversation going something like this: Click here to read the entire …
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(FORBES) Dazed And Confused. Why Do So Many Investors Hate The Stock Market?
Markets have an uncanny knack for moving in the direction that hurts the most people. Right now, that direction appears to be higher. Aside from a few minor setbacks, the equity market has marched higher to new record after new record, leaving many investors bewildered over the move. Yet, even after a 23% total return …
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(BLOG) Tweet, Tweet. Bye, Bye Market.
That was a Friday to remember. The day was supposed to be dominated by Jay Powell’s much-anticipated talk in Jackson Hole. Investors were looking for clues on the timing and direction of the next Fed policy move. Powell’s speech ended up satisfying markets, but not the President. Trump wants a 100 bp ease, and he wants it …
(FORBES) Is Trump Right About The Fed?
No matter your political view, you have to admit President Trump is entertaining. But are his views on monetary policy and interest rates accurate? Click here to read the entire post on Forbes
(BLOG) 30-Year Rates at 2%? Really?
Well, you can’t say the markets were quiet last week. While the stock market plunge of 3% on Monday may have dominated the news, the big story for bond and credit folks like us was the dramatic drop in rates, especially the 30-year sector. There was too much going on to fit everything into the …
