Why are markets so volatile even though the Federal Reserve telegraphed their interest rate stance? Under the leadership of Chairman Jerome Powell, today’s Federal Reserve Board was supposed to be different than boards of the past. Although the Fed’s dual mandate continues to be maximum sustainable employment and stable prices, a goal of this board … Continue reading Is the Federal Reserve to Blame for the Recent Market Volatility?
Changing the way investors look at volatility from “risk” to “opportunity” can be the most powerful tool investors can utilize to combat turbulent times. 2021 was one of the better years on record for financial markets. Aside from fixed income, all asset classes delivered positive returns and three – U.S. Equities, Natural Resources and Real … Continue reading Friend or Foe?
How to ensure your financial life reflects your values and leaves the legacy you intend. We’ve had a special visitor come to our house recently. Every few months (twice this past month), my daughter will wake to a crisp $5 bill (thanks, inflation) under her pillow in place of a tooth she lost the day … Continue reading Values and Legacy: Beyond the Numbers
The first quarter of 2022 was one of the worst on record for the bond market. Bond markets came under intense pressure during the first quarter, with all issues posting losses amid one of the worst quarters in recorded credit market history. At their March meeting, the Federal Reserve raised interest rates for the first … Continue reading Credit Markets: Is A Recession Coming?
The consensus seems to feel Chinese equities are uninvestable. Read why the herd could be wrong. The year was 2019. Chinese equities were in the middle of a strong year. Nearly half of the world’s largest technology companies by market capitalization were based in China. The Chinese government was on a mission to catch then … Continue reading The Great Fall of China
What might monetary tightening bring for markets? Markets have navigated the recovery phase of the economic cycle supported by monetary and fiscal authorities who have injected record levels of liquidity into the financial system. That’s changing. The Federal Reserve is expected to increase interest rates in 2022, to help fight inflation, while U.S. fiscal policy … Continue reading Mid-Cycle: Keep Calm and Carry On
An ounce of prevention is preferable to the hours a cure could take. Welcome to 2022! I have always been keen to set New Year’s resolutions, but this year I am narrowing my usual long list down to one: to protect my name and accounts from cyber and credit fraud. I invite you to join … Continue reading My New Year’s Resolution: Protection from Fraud
The average U.S. bond had a negative total return in 2021 for the first time since 2013. The fourth quarter was another volatile one for interest rates as credit markets grappled with elevated inflation, the prospect of slowing economic growth in 2022, and the onset of the COVID Omicron variant. Notably, the yield curve flattened … Continue reading Credit Markets: Slower Growth Ahead?
Where are the superior risk/rewards in this sensitive economy? Many investments have more than doubled since their pandemic lows. However, the U.S. equities market is in an interesting position as we enter the fourth quarter. Due to the sizable disruptions caused by the Delta variant and ongoing global supply chain issues, global markets have become … Continue reading Buy Economically Sensitive for a Sensitive Economy
What Does It All Mean? The primary monetary policy tool for central banks is setting the level of short-term interest rates. For the U.S. Federal Reserve (Fed), this means adjusting short-term interest rates to support its dual mandate of price stability (controlling inflation) and maximum sustainable employment. However, once short-term interest rates are set near-zero, … Continue reading Quantitative Easing, Tapering, Liftoff, and Rolloff
