The FOMC decided to throw a pass by cutting rates; but given the market’s response, it looks like they were tackled for a loss. In Woody Hayes’ parlance, the one positive of a forward pass turned into a negative. Powell attempted to offer three justifications for the policy move: to insure against downside risks, to […]
In our previous discussion of the three options facing the FOMC – raise the funds-rate target, hold the rate steady, or cut the target rate – we argued that there were risks and potentially negative consequences associated with each. The first option would shock markets and raise questions about the Committee’s rationale, regardless of what […]
Ohio State’s Woody Hayes used to say that his problem with the forward pass was that “Three things can happen, and two of them are bad.” Well, after Chairman Powell’s testimony last week, the FOMC may find itself in a similar position, only maybe worse. The Committee can do three things – lower rates, keep […]
In the commentary leading up to the June meeting, I argued that some relaxation of the tariff issues with Mexico, combined with relatively good data for the US economy, would make the FOMC’s decision to hold pat on rates relatively easier. While the FOMC did decide at its June meeting to hold rates constant for […]
Excerpt from Bloomberg The Currency Wars Are Starting to Flare Up Again 06/18/2019 By Robert Burgess NEGATIVE YIELDS KEEP EXPANDING Draghi’s dovish comments did wonders for the sovereign bond market, sparking a rally that pushed yields lower almost everywhere around the world. French 10-year note yields fell to zero for the first time after Swedish […]
May 1, 2019 – Jeremy Schwartz and Liqian Ren from WisdomTree Funds hosted an investment strategy discussion that covered factor investing, U.S. sector trades and the global outlook with Matt McAleer, Director of Equity Strategies at Cumberland Advisors. Read about or listen to their discussion here: https://www.wisdomtree.com
Market check: talking interest rates and inflation Yahoo Finance Video – March 13, 2019 Jensen Quality Growth Fund Portfolio Manager Allen Bond talks inflation and interest rates with Yahoo Finance’s Adam Shapiro and Julie Hyman and Cumberland Advisors Chairman & Chief Investment Officer David Kotok. Watch at Yahoo Finance or in the embedded player below.
With the desire to finance both an increasing deficit and an increase in government services, politicians are searching far and wide for funds. Increasingly, proposals are surfacing to tax wealth rather than income as the means to fund pet projects. The proposals attract followers since unequal distribution of wealth is viewed as a problem that […]