Tag Archives: Capital Flows

Reversal of fortune – FT

Posted on March 30, 2015 by macromon

The story of the markets in the first quarter has been the flow of money out of US equities and towards Europe. John Authers suggests that this could be driven by a renewed dose of nerves about the US economy. … Continue reading →

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Targets of Yield-Seeking Capital

Posted on January 18, 2011 by macromon

This graph from the World Bank illustrates why Brazil is having such a problem with capital inflows.  Capital will always seek out the highest risk-adjusted return. During times of excess liquidity and low interest rates, however,  markets ignore or jettison … Continue reading →

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Chart of the Day – Yield Seekers Go Parabolic

Posted on October 28, 2010 by macromon

“John Bull can stand many things, but he can’t stand two zero percent.” We have written about yield seeking capital flows, the currency wars, and zero interest rate, monetary policy, but nothing illustrates the issue better than this chart of … Continue reading →

Posted in Bonds, BRICs, Monetary Policy | Tagged , , | Leave a comment