Negative Interest Rates
How low can rates go? The Bank of Japan (BOJ) dove into the negative interest rate rabbit hole last week when it dropped its benchmark interest rate to minus 0.1 percent. If you’ve been following...
View ArticleThe FED Effects Sentiment
Everyone makes mistakes. Some people learn from them. In GMO’s March 2016 white paper, James Montier and Philip Pilkington continued to explore the Federal Reserve’s influence – The FED Effects – on...
View ArticleInflation and Higher Interest Rates
We are flirting with higher interest rates. Last week, yields on 10-year Treasury bonds rose to a 17-month high of 2.44 percent, reported The Wall Street Journal, before retreating to finish the week...
View ArticleThe Long-Term Affect of Low Interest Rates
How Have Low Interest Rates Affected Economies, Governments, And Individuals During The Past Few Years? Late last year, McKinsey & Company released a report that took a closer look at “the...
View ArticleWeekly Perspective – June 30, 2014
The Markets Last week, the U.S. Department of Commerce delivered news that was about as welcome as a report of a great white shark sighting off a popular beach during the Fourth of July holiday. The...
View ArticleWhen Will The Fed Raise Rates?
When Will The Fed Raise Rates? So, when exactly is the Federal Reserve going to increase the rate for overnight borrowing that they have held at the zero bound for 5 years (and counting)? It’s a...
View ArticleAre Higher Interest Rates Ahead?
Things you may want to know… Last Friday, Financial Times (FT) published, ‘Five markets charts that matter for investors.’ Among the issues addressed in the charts were: The bond market bear watch. The...
View ArticleU.S. Treasuries Are Offering a Lesson in Supply and Demand.
Last week, the U.S. Treasury auctioned $258 billion in bonds. Treasury auctions are the way the United States government finances its debt. The Treasury sells short-, intermediate-, and long-term IOUs,...
View ArticleHold On to Your Hats!
Recently, stocks have delivered a wild ride. During Thanksgiving week, U.S. stock markets took investor uncertainty on the chin, suffering a 3.8 percent drop, which was the worst performance in eight...
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