Posts Tagged ‘Interest Rates’

8 Notable Price Points Adjusted for Inflation

Somehow the $28,852,576.06 Man just doesn’t have the same ring to it, but that’s what it would be in 2014 with inflation. Inflation is a real thing, even if it’s been incredibly low as of late.  With quantitative easing and a zero interest rate policy by the Fed, it’s actually been unusually low and for a sustained time frame. I think it’s reasonable to expect inflation in the future, whether that’s 2, 5, or 10 years.   There are some investments that are less interest rate and inflation sensitive than others, so keep that in mind when crafting a well ... Read More

China’s Inverted Curve

An inverted yield curve in the US has predicted 6 out of 7 worsening economic conditions in our country since 1970. In China, we don’t have the same type of statistics because of their young open economy, but recently their yield curve has “inverted”. I’m watching this and realizing it’s just another of many economic indicators out of China pointing towards a slower economy. I really don’t want much (if any) exposure to the Chinese Stock Market. This also has consequences to the whole global trade market as China is the 2nd largest economy right now. We truly are a ... Read More

What is your Interest Rate Sensitivity?

What is your interest rate sensitivity? If you reply “what does that mean”, then you definitely need to listen to my video below. I talk about a quick and dirty way to estimate how a Rising Interest Rate will negatively effect your particular bonds and/or bond funds. Read More

Difference Between Fiscal and Monetary Policy

What’s the difference between Fiscal and Monetary policy? It seems like discussions about these 2 similar, but very different, topics are forever getting confused. If you’re worried about taxes, deficits, and the debt, is that a fiscal or monetary issue? I want you to know the difference so you’re the smart one at the cocktail party discussion.   Read More

QE2

Quantitative Easing ( known as QE 2 amongst friends) is coming this quarter. In my opinion, it’s being priced into the markets already. What is it? A scheme by which the money supply is increased and hopefully starve off deflation and boost the economy. Sorry, I’m not buying it. CLICK FOR FULL ARTICLE – QE1 FAILED, WHY WILL QE2 WORK CLICK FOR FULL ARTICLE – FED’S STRATEGY OF GETTING RETAIL INVESTORS INTO STOCKS VIA QE2 WILL FAIL   Read More

Ten Things Making Me Nervous

If you look back at my 3rd Quarter Preview (here) I mentioned I forecast the 3rd quarter would be up. That’s proving to be a great move (if I do say so myself). But what makes me nervous? This article sums up a lot of my feelings. Does that mean I’m bearish for the 4th Quarter? I guess you’ll have to wait until my 4th Quarter preview in a couple of weeks to find out. Click on this link for FULL  ARTICLE   Read More

Inflationary Period Decisions

Last week I talked about recommendations assuming we’re in a DEflationary period. This week I give suggestions for how to invest in an INflationary period. Oh yeah, lots of good stuff in my videos (if I do say so myself). Listen to my video below.   Read More

Deflationary Period Decisions

At the beginning of the year most economists were predicting an inflationary period. They were wrong. This week I give suggestions for how to invest in a DEflationary period. Next week I take the opposite view and say “how should you invest if it’s actually an inflationary period?”. Hilarity ensues of course. Okay, maybe not. Listen to my video below. Read More

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