Monday, March 18, 2019
As volatile as 2018 was in stocks, 2019 so far has been anything but. After the first two months of the year, market volatility has been nearly non-existent. It’s much closer to the ultra-low volatility environment of 2017, where the VIX barely cracked 15 the entire year. Of course, we’re starting off from a higher […]
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 […]
Later this week the Federal Reserve Board is expected to announce another interest rate hike. The Fed will likely its target short term interest rate by 0.25% to a range of 2.25% to 2.5%. The new Fed Funds rate is up from 0.50% two years ago. While many investor fears concerning higher interest rates and […]
I don’t currently believe the higher level of stock market volatility is a sign that the next economic recession is right around the corner. Yet, I could be wrong, and the market could also plunge into a bear market without the drop being triggered by the economy going to negative growth. My income investing strategy […]
With the Fed announcement behind us, it’s time to start thinking about how to trade the expected slow increase in interest rates. The next small rate increase is expected in December, and then there could be two or three more incremental increases in 2019. Of course, we can’t predict definitively what will happen. A change […]
The midterm elections left the U.S. with the House of Representatives controlled by the Democrats, Republicans tightened their hold on the Senate, and President Trump has the bully pulpit and veto power. That is a formula for real bi-partisan compromise or a government that will have trouble just passing a budget. I will be a […]
Can the Fed cause a market crash? In 2017 Fed Chair Janet Yellen reassured us: “Would I say there will never, ever be another financial crisis? …. That would be going too far but I do think we’re much safer and I hope that it will not be in our lifetimes and I don’t believe it will […]
“Oh my gosh”, my wife Jo exclaimed. “He’s walking right toward us!” He smiled, extended his hand and said, “Hi, I’m Ron Paul.” I smiled, shook his hand, and introduced myself and my wife. I was the oddball when I wrote for Casey Research. I was surrounded by legendary newsletter pundits and heavy-duty researchers. I […]
Last week the Federal Reserve Board increased its Fed Funds Target rate for the second time this year, to 1.75%. The Fed Funds rate controls yields on the short end of the yield curve. Rate increases typically push fear-driven investors to sell the income stock categories like REITs and Utilities. Informed investors use these sell-offs […]
