Over the past few years, some highly respected economists have been alarming investors with their predictions that the Federal Reserve’s quantitative easing (QE) program fuels inflation. When inflation heats up, interest rates rise, and investors who own both stocks and bonds see the value of their bonds fall.Read More
Inflation can have a dramatic impact on investors that own bonds. Bond-holders don’t like to see, the costs of goods going up faster than what they are receiving in interest from their obligations.
So why should anyone own gold when its connection to money is founded in part on folklore and a gold standard that no longer exists?Read More
Add ex-Federal Reserve Chairman Alan Greenspan to the list of experts warning about a bond market bubble. Speaking in late July to Bloomberg News, Greenspan warned, “Equity bears hunting for excess in the stock market might be better off worrying about bond prices…Read More
There is much talk in the financial press about Central Banks imposing ‘negative interest’ rates—which adds yet another oxymoron to a list that includes ‘Great Depression,’ ‘jumbo shrimp,’ and ‘open secret.’Read More
In 1994, Bill Clinton’s political adviser James Carville famously said, “I used to think that, if there was reincarnation, I wanted to come back as the president or the pope, or as a .400 baseball hitter. But now I would like to come back as the bond market. You can intimidate everybody.”Read More
The Federal Reserve, a.k.a. “the Fed,” has kept the federal funds rate at zero for seven years now. But after a strong monthly jobs report in October, where the economy created 271,000 new jobs and the unemployment fell to 5%, the Fed may finally be ready to raise it.Read More