Stocks Down, Bonds Up
This would be a warning against investing in bonds because the interest rates were simply too low. The risk was too high that the price of the bond would fall […]
This would be a warning against investing in bonds because the interest rates were simply too low. The risk was too high that the price of the bond would fall […]
The US Federal Reserve, in a widely expected move on Wednesday, left interest rate unchanged at 1.50-1.75 per cent, acknowledging that inflation is near its 2 per cent target. The […]
Sometimes there are swift changes in the economy, and we are currently witnessing an era of ever more rapid transition. Even so oil remains the main energy source for the […]
The prospect of a trade war poses “downside risks” to the US economy, which otherwise is poised to grow at a solid pace, the Federal Reserve said Wednesday. While the […]
Congress has voted to spend 300 billion more. Adding this to the projected budget deficit, the Treasury is going to have to find about one trillion more to finance expenses.
US dollar weakness at the end of 2017 and the start of 2018 has made it clear that traders are going to have to be careful with dollar futures. On Friday, 12thJanuary 2018, the euro was trading at 1.2202 against the US dollar with an increase of 1.41% for the day (+0.0170). That the dollar is weakening seems odd as the Fed has clearly given forward guidance for three more interest rate increases in 2018. Given that, one would expect a stronger dollar especially as QT (Quantitative Tightening) has only begun.
People are becoming more and more frustrated. Donald Trump is not the end result, he’s the harbinger, the beginning of where we are going.
As the Fed continues with its announced policy of raising rates, it will be easier to find good buys in the secondary market as earlier issues will have lower prices in order to reflect the higher interest rates of new issues.