In the Bond Market, A Warning

The rise in the stock indices today may signal time for relief to some investors but there is a serious warning being sounded in the bond market. Late last year, I published a couple of posts (here and here) noting that some pundits were calling for the 10-year Treasury note to come down to 2.5% [...]

No Comments

It All Comes Back to Housing

An article in today’s Financial Times talks about the equity market’s incessant need to call a bottom and outlines the pro/con arguments. Nothing you haven’t heard before if you’ve been paying attention but after hundreds of words, the article boils it all down to one factor: the housing market. More on this topic (What's this?) [...]

No Comments

Fed Risks Impotency With Latest Panic Cut

The Fed blows it…again. Before I could even get back from the gym, the Fed announced a 3/4 rate cut. While financial players worldwide were calling for them to do something, this is the wrong move. I’ll flesh it out in more detail in a later post but the short summary: In life, timing is [...]

No Comments

The Fed’s Conundrum

The European Central Bank (ECB) and Bank of England (BOE) both decided to keep rates unchanged last night. This only puts more pressure on the Fed. Several commentators have noted (and I agree) that the Fed needs the cooperation of other central banks if Bernanke and co. wish to continue this cycle of rate-cutting without [...]

1 Comment

Another Week, Another Plea for sub-3% 10-year notes

Dawn Bennett of Bennett Financial Services just appeared on Bloomberg and nonchalantly mentioned expectations of the 10-year note coming down to 2.25% in 2008. She also asserted that there was no inflation — only phantom inflation. She used the ridiculous comparison of gas prices in the US to gas prices in the UK to illustrate [...]

1 Comment

Economic Dissonance

Michael Pascoe runs a daily podcast that focuses on the Australian markets. Yesterday’s morning podcast led off with (paraphrasing), “If anyone can figure out the American stock market, please clue me in.” There have been at least 2 or 3 closes in the last month or so where the market was down big and came [...]

No Comments

-->