Bond Market Takes a Hit
The yield on 10-year Greek bonds were 10% last week. That’s 2% points higher than they were on May 22. Click here to read more. Remember, bond prices fall when interest rates rise. Bond price sensitivity is measured by duration. As a general rule of thumb for every 1% increase in rates the principal... Read the full story
United States vs. the World
During the collapse of 2008 and through the rebound of 2009 U.S. markets and foreign markets closely tracked one another. But toward the end of 2009, and more so ever since, the U.S. has diverged from world markets. Click here to read more. While the rest of the world has developed a very flat look,... Read the full story
The Emperor Has No Clothes: Markets Abandon the Fed
It would seem that the emperor has no clothes. In the last few weeks, markets have begun to act as though they no longer think the Fed’s strategy is credible. Same goes with the world’s other interventionist central banks. Click here to read more. The sole purpose of global central bank monetary... Read the full story
The Fed Sends Mixed Signals
Caroline Baum at Bloomberg explains the Fed’s fuzzy messaging on the future of QE. Click here to read more. First Baum lays waste the idea that the Fed can use predictive models as the basis for sound monetary policy. At his March 20 press conference, Fed chief Ben Bernanke said “it makes more... Read the full story
Beware Air Pockets!
If you’re going to chase bubbles, you had better watch out for air pockets! By May 22nd the Nikkei 225 was up more than 50% for 2013. Speculators and gamblers who believed in the hype have received an unfortunate reality check in the days since. In only ten days, the Nikkei is down a punishing 17%. Click... Read the full story
Billionaire Bond King Bill Gross Slams Ben Bernanke
Bill Gross is out with a scathing new Investment Outlook on Dr. Bernanke’s misguided monetary activism. Click here to read more. Below are the highlights. You can read the letter in its entirety here. Central banks – including today’s superquant, Kuroda, leading the Bank of Japan – seem to believe... Read the full story
Retired Teachers Pay High Fees to Lag the Market
I’d get teacher pensions out of hedge-funds altogether. Retired teachers would be aghast if they truly understood how their money is being “invested”. Click here to read more. Amid questions and criticisms regarding the State of Rhode Island’s hedge-fund investments, Rhode Island General... Read the full story
Volcker Delivers Punishing Blow to Bernanke Fed
In a speech this week to the Economic Club of New York former Federal Reserve Chairman Paul Volcker delivered a punishing blow to the misguided monetary activism of the Bernanke Fed. This is the best speech on economic policy you will read this year. Click here to read more. Volcker has under his belt... Read the full story
This Can’t Be Healthy: Monetary Base Increases Over 260% in less than 5 Years!
The newest monetary base estimate was released by the Fed today. Many investors and analysts have become desensitized to ever increasing amounts of money in the economy, perhaps it’s time to take a step back and look at just how bad it’s gotten. Click here to read more. The Fed reported that today’s... Read the full story
Apple, Corporate Taxes and Congress
Senator Carl Levin, Chairman of the Senate Permanent Subcommittee on Investigations, invited Apple CEO Tim Cook up to Capitol Hill to testify on what the senator called Apple’s “Holy Grail of tax avoidance.” So what is Apple guilty of that required special testimony before a Senate subcommittee?... Read the full story
