Interest Rates

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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 […]

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Is There Still Time To Be Bullish On Bonds?

As low as interest rates have been lately, it doesn’t seem to have diminished investors’ appetite for government bonds.  A yield under 1.50% for 10-year Treasury notes is not a detriment, apparently, when the rest of the developed world is also in an ultra-low rate cycle. Bond investors may have assumed the looming threat of […]

The Great Roundup

The Great Roundup

As a youngster, every Saturday we would head to the movies for a double feature of cowboy movies; all for the price of a quarter. Sandwiched between the storyline we saw scenes of cowboys rounding up cattle, herding them toward parts unknown. That was before McDonald’s, and we never saw them marching to the slaughterhouse. […]

The Virus We Can’t Escape

The Virus We Can’t Escape

One of my earliest childhood memories was my grandmother and me bringing home groceries in my wagon. I’ve never forgotten her ranting about rising grocery prices. She seldom raised her voice, but over dinner, she let it out…. “I’ve never been able to carry home $25 worth of groceries. We had to use the wagon […]

Guaranteed Safe Fixed Income Is Still Possible, If You Know Where To Find It

Guaranteed Safe Fixed Income Is Still Possible, If You Know Where To Find It

Why do retirees crave guaranteed fixed income? It’s simple. Retiring comfortably is having enough money to enjoy your lifestyle, without constantly having to worry about money. Prior to the 2008 bank bailouts, Certificates of Deposit and top-quality bonds filled that role well. Current interest rates are pathetic. At current rates, CDs and quality bonds are guaranteed […]

What Happens to Your Stocks If Fed Rates Go Negative?

What Happens to Your Stocks If Fed Rates Go Negative?

Times are chaotic! Historically, when chaos reigns and emotions are turbocharged, there are winners and losers. Despite the stress, winners manage to see things clearly and keep their wits about them. Recently we interviewed John Williams at Shadowstats. He said government unemployment and inflation numbers are bogus. He also tells us: – Worst U.S. Economic Activity Ever Reported […]

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 […]