EconMatters's blog

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The Inflation Era Has Arrived!





You can ignore and even downplay for a while, but eventually and as sure as the fundamental law of nature that everything has a cost....

 
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Bond Kings to be Dethroned in Second Half of the Year





We believe Jeffrey Gundlach, et al. are wrong regarding the 10-Year Bond yield staying below 2.80% over the second half of the year.

 
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Wall Street Yield Trade: Another Explanation For Low Inflation





One major factor to the slow growth/low inflation in the U.S. is the Wall Street Yield Trade.  By incentivizing unproductive use of capital, low interest rate via monetary policy is actually deflationary.

 
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Doom & Gloom Sells





Have you become conditioned to always see the negative at the expense of missing the bigger picture? 

 
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China-Vietnam Conflict in The South China Sea





China is unlikely to show weakness losing face in front of the international community, while it is too late in the game for Vietnam or even the U.S. to back out of the situation.

 
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What To Expect From June's Major Economic & Central Bank Events





The interesting part is how the Econ Data and Central Bank events for the next three weeks all directly affect the next event, and how the market digests all these events as a whole.

 
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The Party Is Over In The Treasury Market





It is very apparent the Fed literally are making policy up as they go along and Wall Street doesn`t realize that the Fed has no exit strategy.  The learning curve is going to be painful as always for Bond Holders.

 
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The U.S. Job Market is Gaining Traction





Despite all the doom and gloom in the market, we would have loved to have these employment numbers three years ago.

 
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The Bond Market Explained Part II





Since so many people are still slightly confused about how all the pieces come together in this move lower in yields, we feel the need to add some follow-up commentary. 

 

 

 
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European Bonds Front Running ECB Setup for Disappointment





There has been a lot on bond buying in Europe and that enthusiasm has transferred over to the US in anticipation of Draghi's massive bond buying stimulus program similar to that of the U.S. Fed.

 
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The Bond Market Explained For CNBC





Our response to a question asked by CNBC-- “Why if everybody is talking about inflation is the bond market not moving?

 

 

 
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Hot Inflation Reports to Dominate Next Fed Meeting





With much hotter CPI & PPI reports the last two months, we anticipate the May reports before Fed's June meeting to be on the high side, and that the Fed will probably have to address these new inflation pressures....

 
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Coal: A 'Million Dollar Mile' Getting Longer In the U.S.





U.S. demand for coal has fallen in recent years and export has become ever more important to domestic coal producers.  Asia is the obvious export target, but challenges abound.

 
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U.S. Is Not Japan Or Europe





To compare Japanese and European bond yields in order to justify an argument for US bond yields staying historically low once the Federal Reserve is completely out of bond buying is a failed comparison. 

 
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Fed to Raise Rates in 9 Months





St. Louis Fed James Bullard said on Friday that he expects the Fed to start raising rates sometime near the end of the first quarter of 2015.

 
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