March 1, 2010 · 4 comments
in Federal Reserve, US dollar, US economy, consumers, deflation, depression, economy, financial planning, interest rates, investing, market trends, money supply, recession, stimulus, unemployment, wealth protection, wealthbuilding
The rally has been over for a good two months, and the markets have been stuck in a trading range since the New Year. Recent concerns over the potential of sovereign debt crises, however, show that we’re not out of the woods yet.
Just consider some of the following areas for potential setbacks in the markets: [...]
January 20, 2010 · 13 comments
in 2010, Federal Reserve, US economy, bull market, central banks, economy, exchange rates, financial planning, forex, hedging, inflation, interest rates, international economy, market crash, market reports, market timing, recession, risk
Highest ever one-month inflation rise in the UK for December, fiscal imbalances in Greece, weakened macro-economics in Germany, a Canadian housing market bubble, higher than 50% gains in the commodity currencies since last March (2009), and the return of hubris and risk-taking in the U.S. investment banks… what do these all have in common?
Is it [...]
January 4, 2010 · 5 comments
in China, Federal Reserve, GDP, US Treasury, US debt, US dollar, central banks, currencies, debt, deficits, hyperinflation, interest rates, international economy, money supply, wealth transfer, world reserve currency
Aside from American financial institutions and the Fed (the buyer of last resort), the largest buyers of US Treasuries and notes are all Asian countries. You can probably guess which ones.
#1 – China
.
China, more than anyone, is probably most concerned with the value of the US dollar and the stability of their US dollar investments. [...]
December 23, 2009 · 0 comments
in Federal Reserve, US dollar, US economy, central banks, financial planning, government, inflation, interest rates, money supply, stimulus
With long-term U.S. bond yields rising and much of the recovery seemingly in place, analysts are increasingly wondering when the U.S. Federal Reserve (the Fed) will begin to implement its quantitative easing exit strategy and start raising interest rates.
Currently the Fed baseline interest rate fluctuates between zero (0) and 0.25%and has done so since late [...]
Option ARMs are the new subprime. Option ARMs stand for “payment-option adjustable-rate mortgages” – so-called because the rate paid on the mortgage varies with the market, but the total payment can be adjusted by the borrower according to his or her needs. How’s that for a sweet deal? It’s good right now, because interest rates [...]
November 2, 2009 · 0 comments
in DJIA, November, Q4, VIX volatility, economy, interest rates, market reports, news and updates, recession, seasonal investing
Last Friday, the final trading day of October 2009, saw triple-digit losses following the previous day’s excellent U.S. GDP numbers. Are traders and institutional investors just taking money off the table for some profits? Or will this be the beginning of the retrenchment that we didn’t see in September or October?
One thing that is for [...]
Australia just became the first major central bank to raise its interest rate (today, October 6, 2009) since the beginning of the financial crisis of 2008-2009. From 3.00%, it raised rates 25 basis points to 3.25%. So what? What does this mean, you might be asking?
Below I’ll take a look at some of the effects [...]