“I think instinctively – I can’t prove this, we’re going to learn about this empirically – but it seems to me that the neutral rate is probably higher than it was during the intra-crisis period. And so, rates will be higher.” (Jerome...
As rhetoric regarding trade tariffs increased prior to the election and, with that same rhetoric continuing post-election, the danger to free trade and a strong economy is heightened.
Bond prices collapsed nearly 3% post-election and are down 12% since mid-September. Whatever that tells us did not change because of election results. The action in bonds is contradictory to the prevailing assumptions of a melt-up in asset...
The latest salvo fired at the U.S. dollar by BRICS countries includes press reports about "creating an international precious metals exchange to ensure fair pricing and trade growth". Russia's finance minister, Anton Siluanov, announced...
As investors continue to gobble up stocks and the dollar prices of most assets continue to climb, it would appear that all is well. Concerns about weakening economic activity and recession have been moved to the back burner. Now, the focus...
Just a couple of weeks ago, on September 18th, the Fed announced a 50 basis points cut in interest rates. To be clear, the announced cut was generally expected and already discounted in the markets. Most markets had risen substantially...
HOW BAD CAN THINGS GET? Pretty damn bad. Which means that it will likely be much worse than most of us can imagine. Other than Covid and its forced shutdown of economic activity by governments world-wide, the most recent learning...
The price of gold closed at $2578 oz. on Friday. As has been the case for most of this year, the financial media, particularly the gold space, treated us to a barrage of headlines regarding "new, all-time highs" for the yellow metal. It...
No amount of wishful thinking and baseless proclamations will change that. Owning gold stocks (miners) instead of the actual physical metal (in other words, processed and refined with appropriate hallmarks and in tradable form) is a losing...
The bond market seems convinced that interest rates are headed lower for now. The chart (source) below shows the price action for TLT (iShares Long-term Treasury Bond ETF) over the past seven days…