Tag Archives: Interest rates

How Central Banks Steal From Savers

This chart is an incredible disgrace and illustrates how conservative savers, especially seniors, have been robbed by the central bankers.  Christine Lagarde’s recent comment fueled our ire, We should be happier to have a job than to have our savings … Continue reading

Posted in Uncategorized | Tagged , , | Leave a comment

Yield Spike

We highlighted the potential risk in our post yesterday, Druckenmiller On Bonds If you listened to the Druckenmiller interview we posted on New Year’s Day,  he thrives in bear markets, not by shorting stocks but being long bonds.  Shorting stocks … Continue reading

Posted in Bonds, Interest Rates, Uncategorized | Tagged , , | 9 Comments

Mr. Market Goes Full Powell-Wow Over Fed Chair’s Cave

He caved.  At least in rhetoric. Interest rates are still low by historical standards, and they remain just below the broad range of estimates of the level that would be neutral for the economy‑‑that is, neither speeding up nor slowing … Continue reading

Posted in Equities, Monetary Policy | Tagged , , | 2 Comments

The Interest Rate Paradox In Emerging Markets

In advanced economies, interest rates fall during recessions as investors replace risky assets such as stocks with safe assets such as bonds and cash. This makes fiscal stimulus easier. Everywhere else, recessions create fears of debt default or debt monetization … Continue reading

Posted in Emerging Markets, Interest Rates, Uncategorized | Tagged , , , | Leave a comment

Short Covering In Bond Pits And The S&P

Well, the virtual bond pits. Looks like specs are getting spooked and covering their bond shorts. Stunning, however,  that the 10-year note yield is right about where it was on September 21st when the S&P500 made its intraday all-time high … Continue reading

Posted in Fed, Interest Rates, Uncategorized | Tagged , | Leave a comment

Why The 2018 Stock Market Corrections Are Different

Just a quick note and some data to bolster our last post and concern that Treasury yields are not coming in  during this stock market correction. The table illustrates that the this year’s two S&P 10 percent corrections have coincided … Continue reading

Posted in Equity, Interest Rates, Uncategorized | Tagged , | 33 Comments

Week In Review – October 5

Summary Ugly week for Global Bonds.  Run to our Sept 23rd post, The Gathering Storm in the Treasury Market 2.0,  as to why we thought yields were about to spike.  Boy, did they Stocks followed bonds lower causing pain the … Continue reading

Posted in Bonds, Uncategorized, Week in Review | Tagged , , | Leave a comment

Alea Iacta Est!

As Julius Caesar crossed the Rubicon River with the 13th legion into Italy to march on Rome, he turned to one of his deputies, quite possibly, Marc Antony, and made the famous remark, “alea iacta est.”  Historians translate this as “the die … Continue reading

Posted in Bonds, German Bund, Interest Rates, Uncategorized | Tagged , , , | 19 Comments

Will The Real Bond King Stand Up?

We get it. Jeff Gundlach (we are some of his biggest fans) is a trader at heart, as are we, and is very cognizant of short-term market technicals. He recently tweeted, Massive increase this week in short positions against 10 … Continue reading

Posted in Bonds, Interest Rates, Uncategorized | Tagged , | 12 Comments

Swan Lake – June 12

The Global Macro Monitor defines “macro swan” as any global macroeconomic or financial event with the capacity to spill over into world markets causing risk aversion and lower asset prices.  – GMM Euro sovereign spreads were stable today.  The Italy … Continue reading

Posted in Black Swan Watch, Uncategorized | Tagged , , , , | Leave a comment