QE is no longer having any marginal benefit for the economy. It has become the equivalent to “pushing on a string”. Additional QE is not supporting bank lending or broad money growth. Instead, the rapid growth in bank reserves is creating difficulty for the Fed in keeping short-term interest rates within its desired range. The Fed is very likely to announce a tapering of QE before year-end. What will it mean for investors? Are fears of another “taper tantrum” justified?
Read MoreThe debate over inflation continues to intensify, with some investors screaming “hyper inflation” to come sooner than later. Really? This Alpine Macro chart shows that the recent acceleration in inflation has not even made up the lost ground of the Fed 2% target since early last decade. Does this mean that the Fed has plenty of room to wait before taking any action?
Read More“…the political developments have had profound long-term impacts on their political landscape and economic fundamentals.”
Read More“The housing boom will continue, for a number of reasons….”
Read MoreWe are often told that real bond yield is determined by real economic growth. Although this sounds intuitively right…
Read More“…which way do you want to bet your money, buy stocks/sell bonds or do the other way around?”
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Read MoreThis is a placeholder for a quick description for this article. It needs to be concise and quick so that it hooks the customer’s attention to make them want to read more.
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