In a world with $7 trillion of government bonds that yield negative interest rates, one question still puzzles investors: who in their right mind is buying them? Why don’t investors buy higher-yielding US government bonds instead? The answer lies in the understanding of the mysterious “basis swap.” Please click here to read the entire article …
(FORBES) How To Invest Your $1.6 Billion Mega Millions Winnings
If you won the $1.6 billion Mega Millions lottery, how would you invest your instant wealth? Click here to read the entire article on Forbes
(FORBES) Diverging Markets Send Ominous Signal About Health Of Global Economy
The performance of global financial markets is diverging. What does this tell us about the health of the global economy? Is the second longest economic expansion in the last 150 years about to come to an end? Click here to read the entire article on Forbes
(FORBES) Iran: Stuck Between A Political Rock And An Economic Hard Place
Precarious. That is the best word to describe the current situation in Iran. The intersection of geopolitics, economics and internal politics is forcing painful change. How did Iran get to this point and where is it headed? Click here to read the entire post on Forbes
(FORBES) ETFs Won’t Cause The Next Wave Of Panic Selling In The Bond Market
Don’t believe it when people say ETFs will be responsible for the next wave of panic selling in the bond market. There is no evidence to support such a claim. In fact, they will help market liquidity, not hurt. Click here to read the entire article on Forbes
(FORBES) The Path To Hyperinflation: What Happened To Venezuela?
It’s hard to imagine daily life with an annual inflation rate of 1,000,000%. At that rate, the price of a cup of coffee doubles between your weekly paychecks. That is what the citizens of Venezuela are facing, according to a recent report from the IMF. The story of how the country went from relative stability …
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(FORBES) How To Play A Rebound In EM Stocks
The emerging market asset class is testing investor resolve. With few exceptions, stocks and bonds of developing countries have provided negative total returns so far in 2018. The outlook for future returns, though, is better now that valuations have adjusted lower. It’s time to take a serious look at investing in emerging market equities. But …
(FORBES) 3 Jedi Mind Tricks To Guide You Through The Next Bear Market
If you knew with 100% certainty that an economic recession was coming, would you alter your long-term asset allocation? If your answer is yes, then proceed to the next question. If you knew that trying to time the market correctly is virtually impossible, would you try to do it anyway? If so, you need to …
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(FORBES) When Will The High Yield Credit Bubble Burst?
Credit markets around the globe are beginning to show signs of stress. The one outlier is the US High Yield bond market. Can the performance be sustained? Click here to read the entire post on Forbes
(FORBES) The Bond Market Needs A Margin Of Safety, Too
Warren Buffett popularized Ben Graham’s notion of “Margin of Safety” when evaluating the quality of an investment. The idea is that the future is unpredictable and we have to allow for the chance that our projections may be wrong, so we need a cushion in our analysis to protect us when things don’t go according to plan. …
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