Author Archives
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Doug Noland: It’s About Jobs, Jobs, Jobs
Why is it reasonable to believe that monetary policy specifically aiming to inflate securities markets will somehow simultaneously ensure a corresponding modest increase in consumer prices? It’s not.
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Doug Noland: The Short History of Extreme Monetary Policy
“Consider the internet frenzy 20 years ago. Back then, large speculators, mostly hedge funds, were net short on S&P 500 futures in all but five weeks in 1998 and 1999. Those mostly losing bets were completely squeezed out in 2000. That’s when the crash came.”
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Smart Bird: Safe Haven Treasuries Not So Safe
Short-term Treasuries remain a safe investment. The TLT ETF mentioned by Doug has a long duration and its price moves 2% for each 0.1% move in interest rates. Interest rates popped a little this week sending bond prices down. And yes, inflation worries could be part of it.