November 14

Make Yields Great Again

US bond funds in the Bloomberg/Barclays benchmark index lost $18 billion in value this past week as Donald Trump prevailed in the 2016 Presidential election. Total global bond market losses have been $1 trillion as 10 year US Treasury yields rose an astounding 21 basis points on Wednesday alone. The move from 1.80% to 2.13% […]

September 07

What Happened To The Volatility?

The S&P 500 Volatility index, known in the mainstream media by it’s nickname “The Fear Index”, has fallen close to year to date lows at 11.98 as of Friday’s close. It has been a one way trip lower since the Brexit aftermath as the Bank of England and other central banks rushed to calm market […]

August 06

The Blow Off Top Begins

An impressive jobs report took stocks to new all time highs on Friday as the Bureau of Labor Statistics showed a gain of 255k jobs versus estimates of 180k. More importantly wage growth was a tick better than expected coming in at 2.6%. This positive report comes after a disappointing 2nd quarter GDP number and […]

July 04

Bonds Fly High After Brexit

It has been quite a week for financial markets in the wake of the United Kingdom’s vote to leave the European Union. Government bond yields have plunged to record lows even as markets sharply rebounded off the post-Brexit lows. The UK 10 year gilt closed the week at 0.863%, down from 1.35% prior to the […]

May 21

The Fed is Signaling a June Rate Hike

The US Dollar and treasury yields moved sharply higher this week in response to successive signs from the Federal Reserve that interest rates are likely going higher this summer. The fervor started on Tuesday as two moderate Fed regional presidents said that June should be considered a live meeting. Two year treasury yields rose by […]

April 12

Stocks & Euro Stuck in a Range

The S&P 500 has remained stuck between 2020 and 2060 for almost a month now. Price first crossed into this zone in mid-March just after Janet Yellen walked back her guidance on interest rate hikes. The rebound in stocks has been fueled by a recovery in commodity prices and a weaker Dollar. The Greenback has […]

April 02

How Long Can Yellen Delay?

Federal Reserve Chair Janet Yellen has delivered a surprise dovish tilt in her commentary for two weeks in a row. At the March 16th FOMC meeting markets expected a continued move towards hiking interest rates, but Chair Yellen caught investors off guard, saying that only two rate hikes were likely in 2016 instead of four. This […]