Thursday, February 20, 2020
2020 is almost here. It’s a new year, a new decade, and perhaps most importantly, an election year in the US. While the 2020 election is the biggest event that is likely to occur next year, it won’t happen until November. So what’s in store for the economy in the meantime? In a nutshell, the […]
Pundit Bill Bonner predicts: “Most likely, the stock market will crash sometime before the 2020 election. We can’t know when. …. The end of the stock market boom, too, is unpredictable. But each passing day brings us a day closer to when it will crash and burn.” Bonner’s prediction is in line with our 2017 article, “An […]
So the Federal Reserve cut interest rates. This was their third rate cut in the last three months. The new target range for overnight interest rates is 1.5 to 1.75%. That’s below the rate of inflation. There are three things you should do right now. #1. Don’t panic. #2. Seriously, don’t panic. #3. Make sure […]
Investors have finally cracked under the pressure of the trade war with China. Stocks, which were at all-time highs just two weeks ago, are now 6% off those highs as of this writing. Although the S&P 500 is still up 13% year-to-date, Monday’s 3% drop set the alert level to red. Meanwhile, safe-haven investments like […]
The stock market got a nasty surprise on Monday. The Chinese government allowed their currency, the yuan, to sink below seven to the dollar (meaning higher than seven). The Chinese Fed, known as the PBOC, had been defending that level vigilantly for a long time. That’s over with, and it’s a big deal. Let me […]
We’re living in a low-rate world. Get used to it. At the start of the year, the Federal Reserve had plans to raise interest rates a few times. Well, you can forget about that. Over the past few months, the Fed has made it clear that it’s shelved any rate hike plans. In fact, some […]
After a decade of zero percent short term rates, in 2016 the Federal Reserve Board started to increase its Fed Funds Rate, which is the rate that drives all short term interest rates. That rate is now effectively 2.5%. Over the same period, rates at the longer end of the yield curve have not risen […]
It was only six months ago that Fed Chairman Jay Powell said that the Fed was “a long way from neutral,” meaning that they were going to keep raising rates. How times have changed! In December, the central bank hiked rates and the market threw a fit, and the stock market plunged. Still, the Fed’s […]
The Government surprised the world in 2008 when the Fed bailed out the banks at the expense of seniors and savers. The Fed dropped interest rates to historic lows while buying U.S. treasuries and bad loans through their Quantitative Easing (QE) program. Seniors and savers lost over $4 trillion in interest income they would have […]
Mike Maloney’s video, “If You Don’t Think QE4 & QE5 Are Coming, You’re Smoking Something”, raised a red flag. The Fed did not raise rates and didn’t rule out more Quantitative Easing (QE) in the future. Mike fears QE may include bailing out companies that can’t pay their debts. QE was different Unlike historical fed interest […]
