Interest Rates

Finding Yield When Interest Rates Are At Zero

Finding Yield When Interest Rates Are At Zero

Global pandemics and civil unrest don’t seem to impact stock prices, but it remains challenging to find yield in a world of near-zero interest rates. Central banks are doing everything they can to keep global economies from crashing (which is the main reason stock prices are stable), and the result is that yield can’t be […]

Where to Put Your Savings When Rates Go Negative

Where to Put Your Savings When Rates Go Negative

In our recent article, “What The Heck Is Going On?”, our guru friend Chuck Butler remarked: “There’s no harm in holding cash, as long as your bank isn’t charging you to do so, which is probably coming down the road, so be prepared!” Chuck’s remark did not go unnoticed. Subscriber Rikk M. asked, “IF we go […]

Here’s What A One-Year Covered Call In Microsoft Looks Like

Here’s What A One-Year Covered Call In Microsoft Looks Like

In the era of ultra-low interest rates, yield enhancement strategies have become prolific. Actually, let’s take a step back. It used to be that you could generate a reasonable yield from fixed interest investments, like government or corporate bonds. However, with interest rates approaching zero, those types of investments just don’t provide robust yields. So […]

Where are interest rates headed in 2020?

Where are interest rates headed in 2020?

One of the big questions for the financial markets as we head into the next decade is where are interest rates going as we kick off a new year. On one hand, the labor market is strong and stock prices are at all-time highs. On the other hand, many other economic indicators are showing a […]

What Does The Options Market Say About Interest Rates?

What Does The Options Market Say About Interest Rates?

Why are investors so fixated on interest rates? If you follow the financial markets regularly, you’ll notice how laser-focused the investment community is on what the Federal Reserve is doing, how bond markets react, and what it all means for interest rates. But why are interest rates so important? What does a change of a […]

Traders work on the floor of the New York Stock Exchange Tuesday July 29, 2008. Stocks rose Tuesday, rebounding a day after their steep tumble as a jump in consumer confidence offset some of the market's increasing concerns about the financial sector. Falling oil prices also helped lift the Dow Jones industrial average by about 125 points. (AP Photo/Richard Drew)

How Much Higher Are Interest Rates Going?

If the markets weren’t so focused on the trade war with China, then most of the focus would likely be on interest rates. Of course, the trade war has an impact on interest rates, although it’s not a cut and dry connection. In a nutshell, tariffs could hurt domestic economic numbers, which could certainly factor […]