Anytime there are negative or even close to negative real rates for bonds that is a sign that central banks need to change policy.
Even Hellicopter Ben would have balanced remarks. However, Janet Yellen has taken dovishness to an all-time high or low dpending on your perspective.
Good thing the Federal Reserve isn`t worried about inflation, another 2% rise is just noise. But when the Fed does start worrying about inflation, not only is it too late, it is 1970s too late!
Traders and market participants are pretty bad at decision making as it is, the last thing they need is inaccurate information via sensationalized and overhyped TMZ Style News reports to base their decision making process on.
The fundamental mistake is to think in terms of a low yield telling you anything about the economy, as it is price that you should be focusing on.
Those people piling into bonds on bad retail sales numbers based upon antiquated retail correlations are in for one big surprise.
Is $85 a barrel in the cards? Sure it is once the Fed Effect on Oil Price comes out of the market.
The Fed keeps moving their targets, and came up with this ‘slack in the labor force’ argument helped of course by Wall Street or should I say the Big Banks.....
One notices how the United States never has to go in with the military and bail out the Scandinavian countries? At some point the Iraqi people will have to take responsibility for how they want to live and deal with the consequences of these choices.
Give me Football Season over the Federal Reserve any day of the week in terms of actual ‘boots on the ground’ stimulus.
Any Bond Idiot Can Buy into Fear, but they are Forced to Sell into ‘Good Times’!
The worst possible approach is to give Putin more credibility at home...
Investors often choose investment vehicles or make trades based upon faulty assumptions...
Look for a speech on Friday August 22nd by Janet Yellen where she officially signals financial markets that they better start finding their respective chairs.
At some point there is going to be a sea change in bonds. The question is does the last week in July finally cause the Sea-Change in Bonds?