Don’t be fooled by short-term pops in price due to plunging interest rates. We it comes to fixed income funds, past performance can no longer be achieved again. We are simply accelerating to the point of no returns in the US bond market.
I’ve updated my Best TSP Allocation for 2019. The discussion on the best TSP funds has not changed significantly this year from 2018 other than discussing the new TSP I fund index and a reversal in interest rates. Current members… Read More ›
Matt Stoller is trying to wake up America to another crisis already baked into the cake. After reading his article (excerpts below) my view is simple, wall street greed is guilty of treason.
There is nothing like another “raising tariffs” tweet during a global industrial recession and busted interest rate expectations all in the same week to push the market off the top of its price channel. Let us hope speculators don’t start… Read More ›
There is ample justification for gold’s runup – experimental activist monetary policy, a world of debt, a historic global securities Bubble, and a troubling geopolitical backdrop.
Playing a dangerous game, the Fed is now moving from accommodating this Bubble to actively stimulating it – from pushing back against a tightening of financial conditions to pushing forward already extraordinarily loose conditions.
It’s always the same: Everyone is happy to ignore bubbles when they’re inflating. Bubble analysis, by its nature, will appear foolish for a while. But bubbles inevitably burst. There is no doubt that China’s historic bubble will burst, and I expect this will prove the catalyst for faltering bubbles across the globe – including here in the U.S.
Inquiring minds are asking why the Fed is considering an interest rate cut when the SP500 is sitting at an all-time high, unemployment is near an historical low, wage growth is solid and of course we keep hearing we are in “the greatest economy ever”.
There is increasing evidence of market dislocation and associated Monetary Disorder… Where’s all this “money” coming from?
At this stage, however, global bonds have adopted an altogether different focus: China’s financial and economic structures are untenable. Sustaining rapid Credit growth is increasingly fraught with peril. With market players now questioning Beijing’s implicit guarantee for smaller and mid-sized banks and financial institutions, financial conditions are in the process of tightening at the financial system’s “periphery.” And tightened Credit conditions have begun to reverberate in the real economy.
Small caps have not bought into this last rally. Nor have some other financial sectors. At least the trade war is progressing nicely…