US interest rates are expected to rise in the middle of 2015 or even later, though it would probably be appropriate to hold them lower a little longer than that, said Federal Reserve Bank of Chicago President Charles Evans. A lot will depend upon the data and how quickly inflation moves up to the central bank’s target of 2 percent, …
One Man’s Opinion: Will The Equity Rally Continue Next Year?
Friday was a fascinating day, because this was the day when the markets made up their mind that growth is good, said Jeff Korzenik, chief investment strategist at Fifth Third. But what is particularly interesting is that the markets are not afraid of the taper, as exemplified in the bond market today. This has a lot of implication for sector …
One Man’s Opinion: Has The US Fed Lost Control Over The Bond Market?
Marc Faber, author of the Gloom, Boom & Doom report expected the Federal Reserve to reduce its monthly bond purchase program by $10-$15 billion, but says he’s not surprised Ben Bernanke didn’t bite the bullet. The people at the Fed are academics with little understanding what’s happening on the ground. What they fail to understand is that printing money benefits …
Markets In “Taper” Tantrum Mode
[Chart courtesy of MarketWatch.com] Equity Indexes plummeted and growth stocks got nailed adding to Wednesday’s solid losses, one day after Fed Chairman Ben Bernanke said the Federal Reserve could start scaling back or tapering its monthly bond purchases by year-end. The selling began on Wednesday in the bond market as yields spiked sharply. From the bond trading pits the conflagration …
One Man’s Opinion: Are The Markets Being Perfectly Logical Now?
The markets are not being terribly logical and they are not expected to be logical in the short-term either, says David Kelly, Chief Global Strategist at JP Morgan Funds. Though the markets have remained volatile in recent times, fundamentally, the US economy has improved, Dave noted. Also, since the labor participation rate is falling, the unemployment rate will gradually come …
One Man’s Opinion: Is New Cash Driving The Market Indexes Higher?
It is assumed the “great rotation” causes money to flow from bonds to equities that drives the stock market higher. However, in the present context, many disagree saying it’s simply new cash that’s driving the markets higher. Jeffrey Rosenberg, chief investment strategist for fixed income at BlackRock Inc, is one who agrees with that theory. If you look at the …