The Taper is Finally Here and Markets Did Not Panic | November 6, 2021

The Taper is Finally Here and Markets Did Not Panic. Tapering simply means that the Fed will reduce, and eventually eliminate, the extraordinary accommodation supplied to financial markets since the beginning of the pandemic. That accommodation was in the form of open market purchases of both Treasury bonds and mortgage backed bonds (known as QE […]
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Can Inflation Pop an Over-Inflated Stock Market? | October 2, 2021

Can Inflation Pop an Over-Inflated Stock Market? “By a continuing process of inflation, government can confiscate, secretly and unobserved, an important part of the wealth of their citizens.” – John Maynard Keynes Over the last 20 years, an era known for low inflation, the CPI Index has nonetheless managed to increase about 53%. That is, […]
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Tapering is Not a Fashion Statement | August 28, 2021

Tapering is Not a Fashion Statement There’s been a lot of talk about tapering lately and we’re not talking about the slim fit that is the style for men these days, we’re talking about the Fed’s balance sheet. Here’s what you need to know. For most of the period from late 2008 to today, the […]
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The Bond Market Looks Confused | July 31, 2021

The Bond Market Looks Confused Market sentiment has been flip-flopping back and forth between inflation concerns and economic concerns. The very rapid economic recovery has outpaced a COVID constrained supply chain and caused price increases and inflation concerns. Now, the COVID acceleration and rising prices are beginning to slow demand (see the recent housing data) […]
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Why Are Government Bond Yields Declining? | July 10, 2021

Why are government bond yields declining? Is the new Delta Variant a threat to the global economic recovery? What should we expect from the upcoming earnings season? What we found to be most interesting, since Federal Reserve Chairman Powell spoke on June 16th, is government bond interest rates have been on a decline (please see […]
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Is Big Oil Dead? | June 5, 2021

Is Big Oil Dead? Energy stocks have been on a tear in 2021 as the economy re-opens. The Biden Administration is pushing hard for Green Technology. Ironically, that could make oil and gas reserves more valuable. The best performing sector this year has been energy, rising almost 6% this week alone and 47% YTD, as […]
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Markets Are Fickle – Bank of America Fund Manager Survey | April 17, 2021

Markets Are Fickle – BofA Fund Manager Survey Perceived risks are shifting away from interest rates and inflation. The latest concern is ‘Peak Economic Growth’ implying that things can’t get much better. When all the experts and forecasts agree – something else is going to happen. The time to re-balance portfolios is approaching. Last week […]
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