Interest Rates

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Volatility Is High Again, Take Advantage of It

The hot consumer price index (CPI) number last Friday has caused major damage to the equity markets. Volatility has remained elevated. There seems to be no relief in sight regarding the inflation numbers that we are seeing across industries—and, most importantly, in our daily expenses. The Federal Reserve will do what it can to increase […]

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How to Tell When the Fed is Lying

Last fall the Fed said it began “tapering” the amount of debt securities they were buying. This Wall Street on Parade (WSOP) headline reports; “Since the Fed Announced It Was ‘Tapering’ Last November, It’s Actually Added $332 Billion in Liquidity with New Debt Security Purchases.” The Fed says one thing and does another; they continued buying debt […]

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Grow Your Dividend Income Despite Inflation and Rate Hikes

Dear Investor, High inflation has become a driving force in our lives. It’s challenging to invest for income and keep up with inflation, especially outside of commodity-focused investments. It takes an extra step to ferret out investments that will perform well while inflation stays high. We need higher interest rates. But one category of income […]

Here’s How Fed Hikes Could Affect Your Retirement Savings

Here’s How Fed Hikes Could Affect Your Retirement Savings

The public is on to the Fed’s inflation game! The Fed called it “transitory”. Baloney! The Fed announced: “…it is accelerating its removal of monetary support for the economy, citing a rise in inflation that has seen the biggest jump in prices nearly 40 years. In a move to cool growth, policy makers also said they expect to […]

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The Perfect Income Play on Rising Mortgage Rates

Dear Investor, Last week, the Federal Home Loan Mortgage Corporation (FHLMC), better known as Freddie Mac, reported that the average interest rate for 30-year fixed-rate mortgages jumped to 3.45%, up from slightly more than 3% a month ago, and 2.79% one year ago. Higher rates hurt traditional mortgage companies – refinancing business dries up, and […]

Trade of the Week: Wells Fargo

Trade of the Week: Wells Fargo

With earnings season coming up, we’re seeing some unusual action in big bank options.  The expected rate increases from the Fed in 2022 mean that banks could see greater profitability from their interest rate spreads.  This is leading to expectations of strong guidance from banks during earnings season.  One strategist is using a covered call […]

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Use Options to Get More out of Your Banking Shares

The banking sector can be challenging to trade when interest rates are near zero. On the one hand, banks tend to earn more profits when interest rates are higher. On the other hand, if low interest rates lead to economic improvement, that’s good news for banks. The reason ultra-low interest rates are typically not the […]

Using Options To Juice Your Fixed Income Returns

Using Options To Juice Your Fixed Income Returns

The Federal Reserve’s ultra-low interest rate policy and quantitative easing programs are regularly debated among economists, armchair analysts, and everyone in between. Monetary policy can be pretty complex, with hundreds of variables to consider. So, it’s not a huge surprise that there’s so much disagreement on policy. Most studies have shown that the Fed’s increasingly […]