Tag Archives for " US federal reserve "

Bond yields are rising, but more importantly normalising

Bond yields are rising, but perhaps more importantly, they are also normalising.  Yields are rising, not because inflation rates are higher, but because of liquidity imbalances between borrowers and lenders. Where inflation fits into this process, is as a catalyst for returning the pricing of capital back to markets by removing the headroom of central […]

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Markets try to second guess the Fed, but perhaps all now irrelevant

That favourite pastime for markets has been to try and anticipate the Fed’s next move, which to be fair, has been the defining equity investment strategy for over a decade and a half.  That however, presupposes that it remains in charge of events rather than now increasingly being at the mercy of them. So while […]

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How many jobs added in July??

Perhaps Biden was correct and this is not a recession, as the US reports another increase in monthly private sector jobs in July. This time from June’s reported +404k net adds to almost half a million (+471k) in July, with annualised  hourly wages meanwhile increasing by +5.6%. But hang on, if one strips out the […]

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The monster from the ID – inflation

The 1956 movie Forbidden Planet was at its core a tale of hubris; that technology can overcome nature, whether for Krell or human. The analogy for  markets might be the conceit that the business cycle can be expunged without consequence and that one can borrow oneself out of debt.  Like the ‘monster from the Id’ […]

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Rising Bond Yields & a Flattening Curve

A flattening yield curve is often seen as an ominous portend of economic doom, while a forced increase in interest rates can often ensure its delivery.  This convergence however, is the conclusion of a tale that has been in the making for a couple of decades, but one where the inflationary consequences now threaten to […]

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US debt ceiling and the point of no return

What is the drifting gold price trying to tell us, because rising inflation and reckless government fiscal policies suggests impending currency debasement? Is this just another case of cognitive dissonance, that has accompanied COVID-19(84), or perhaps a temporary phenomena such as a big holder being forced to sell gold to raise USD to cover some […]

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Fed flip-flops on tapering again – haven’t we been here before?

A solid monthly jobs report and the Fed rushes out some rumours that it may bring forward the supposed planned tapering. Yes, they’re that obvious!  From the subsequent -6% drop in the gold price, it would seem a few precious metal traders were happy to take the bait, although the lack of follow through from […]

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