Tag: Federal Reserve

No, Fed: Supply Construction, Not Demand Destruction

Image by bridgesward from Pixabay Everyone loves to dunk on the Federal Reserve (Fed). To many, the setters of U.S. monetary policy never get it right. Its stable of Ph.D. economists are always too late, or too slow, or too early, or too fast. Shockingly, many have built prominent careers in peddling this viewpoint. Yet,..

Read more

Money’s Many And Problematic Definitions

Image by PDPics from Pixabay There’s no escaping the Federal Reserve (Fed) when it comes to investing these days. The Great Financial Crisis (GFC) showed how the movement of money through the financial system can impact markets and mainstreamed these previously obscure discussions. As a result, flexing your financial system “plumbing” expertise is now fashionable…

Read more

Banks Create Money From Leverage, Not Thin Air

Image by Kranich17 from Pixabay Not a day goes by without the need for money. Whether buying a cup of coffee, checking your investment portfolio, or contemplating monetary policy, money is always top of mind. Yet despite daily use, money confounds us. Even experts ascribe mythical qualities to it. For example, many believe that banks..

Read more

Pondering Investment Themes After The Russian Invasion

Image by linsenfutter2016 from Pixabay So much for returning to normal. I had hoped that easing COVID restrictions would supercharge economic growth this year. Many affected industries and markets were rebuilding and reopening to a backlog of robust demand. Sure, markets had issues to grapple with: inflation, changing central bank policies, and the return of..

Read more

Rising Rates And Volatility Might Create Future Opportunities

Image by QuakerGirl22 from Pixabay Catching inflection points is the holy grail of trading. It’s what makes investing lore. From shorting the 2005 housing boom or skyrocketing technology stocks in 2000, to classic value investing, taking contrarian positions can create large profits and legendary reputations. While seductive, it’s a difficult way to trade over the..

Read more

Inflation: Why Now And Will Bondholders Care?

Image by StockSnap from Pixabay As I sat down to write this month’s article, just one topic came to mind: inflation. Readers know that I just wrote on this theme. Yet, it remains topical and I have more to exploring to do. I’m specifically interested in why we’re seeing inflation now and does it even..

Read more

Inflation Is Shortages And Thankfully Transitory

Image by kalhh from Pixabay I’ve got inflation on my mind these days. Who doesn’t? The U.S. 10-year treasury yield is up nearly 3-fold in the past year, stoked by fears of inflation. Commodities too are rocketing higher for similar reasons (in part). However, I’m not convinced these trends will hold. To me, the deck..

Read more

“Burn It Down” Nihilism Is Harmful Too

Image by Omni Matryx from Pixabay These are truly fascinating times to be an investor. Markets seem to be going through a generational phase shift, and not necessarily for the best. I see a culture that is leading itself away from prosperity and towards the abyss, and I’m helpless to stop it. My emotions run..

Read more

COVID-19 Is Not The Last War

Image by the Centers for Disease Control and Prevention These are truly remarkable times in the investment markets. The speed, intensity, and ubiquity of this selloff brings just one word to mind: violence. It would be remarkable if it wasn’t so destructive. Sadly, the reactions from our politicians and the public were predictable. The Federal..

Read more

The Unsurprising Repo Surprise

Image by Nina Garman from Pixabay Have you heard? There’s trouble in the repo markets. Even casual investment market participants probably know that something’s amiss. While only a handful of investors participate in repo, this obscure corner of the investment markets rests at the epicenter of the financial system—hence all the attention. The turmoil caught..

Read more

Social media & sharing icons powered by UltimatelySocial