Jun 25, 2014 | Interest Rates, Reading Recommendation
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 diversified portfolio. If you have questions about your portfolio, I’m just a phone call away.
Mar 14, 2012 | Asia, Banking, Interest Rates
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 global economy, and what affects China affects the US.
Stay tuned to my newsletters this year as the China story unfolds.
Click for the Full Article
Dec 2, 2010 | Bonds, Interest Rates, Market Commentary, Videos
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.
Nov 11, 2010 | Banking, Interest Rates, Monetary Theory, Taxes, Videos
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.
Oct 20, 2010 | Interest Rates, Market Commentary, Monetary Theory
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