ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
This past week was an important one for monetary policy. The Bank of England (BoE) made clear it is willing to put off rate hikes as long as necessary. Despite its words that suggest otherwise, the Bank is NOT biased for action. U.S. Federal Reserve Chair Janet Yellen made it clear that, all else being … Read more
The market is once gain gearing up for a December rate hike from the U.S. Federal Reserve. Today’s nudge came from Janet Yellen her first public commentary since last week’s decision on monetary policy. At that time, a simple and clever change in language convinced the market to pull in the month for a first … Read more
The U.S. Federal Reserve released its latest decision on monetary policy and left interest rates unchanged. There was of course no surprise there. However, the very mention of a future rate hike was treated like new news: Fed holds rates near zero, but signals possible hike "at its next meeting" https://t.co/vF4pOxlo9p — WSJ Breaking News … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on September 28, 2015. Click here to read the entire piece.) While the S&P 500 (SPY) continues to languish in the aftermath of the flash crash and accompanying sell-off, the iShares US Home Construction (ITB) is still up 5.7% for the year … Read more
“…I expect that inflation will return to 2 percent over the next few years as the temporary factors that are currently weighing on inflation wane, provided that economic growth continues to be strong enough to complete the return to maximum employment and long-run inflation expectations remain well anchored. Most FOMC participants, including myself, currently anticipate … Read more