Falling markets block technology, the dollar, and private equity

font size Japan had to step in to support the sliding yen for the first time since 1998, even as it tries to keep interest rates low. Akio-kun / Bloomberg The world has been hooked on cheap money for years. We are now seeing what withdrawal looks like. Raising interest rates from zero led to … Read more

Buy I Bonds now at 9.6%. New price coming in November.

font size The bond rate I hit a record 9.6% for bonds purchased starting in May and continuing through the end of October. dream time One of the current best deals in the bond market – Treasury Series 1 savings bonds – is likely to become less attractive in November when a new price is … Read more

The next financial crisis may already be ripe, but not as many expect

A growing number of traders, academics and bond market experts are concerned that the $24 trillion US Treasury debt market could head into crisis as the Federal Reserve began its “quantitative tightening” on high alert this month. With the Fed doubling the pace that its bond holdings will “roll” its balance sheet in September, some … Read more

Quantitative tightening is about to intensify. What does that mean for the markets?

The Federal Reserve now owns about a third of the Treasury and mortgage-backed securities markets as a result of its emergency asset purchase to support the US economy during the Covid-19 pandemic. Two years of so-called quantitative easing doubled the central bank’s balance sheet to $9 trillion, equivalent to 40% of the country’s GDP. By … Read more

Why this Fed move could be the ‘wild card’ flooding the stock market

Quantitative easing is credited with generating stock returns and boosting other speculative assets by flooding markets with liquidity as the Federal Reserve raised trillions of dollars in bonds after the financial crisis and amid the coronavirus pandemic. Investors and policy makers may underestimate what happens when the tide recedes. “I don’t know if the Fed … Read more