Tag Archive for: bonds

BOTH Stocks and Bonds Soar In November; Confusion or Goldilocks Economy?

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We saw something very unusual in November: both stocks and bonds had record months! This Reuters article – Average 60/40 portfolio has best month in November since 1991 – BofA […]Read More

Why Do We HATE Each Other So Much? And Why Does It Matter For Housing?

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America has not been this contentious or polarized since the Civil War – as most readers know. Many people blame social media for this polarization. The ability to post online without being face-to-face and the ability to post anonymously – seems to foster much more contentious and polarizing discourse.Read More

Big Short Guys Not Shorting! Excess Bond Supply NOT Pushing Up Yields; Fed Does Not Control Interest Rates

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Here are a few random but very important points. BIG SHORT GUYS ARE NOT SHORTING HOUSING! In this recent Milkshakes Markets Madness podcast, famed macro analyst and fund manager Brent Johnson mentions that […]Read More

Europe Raised Rates By 1/2%, and Rates FELL

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The European Central Bank (ECB) raised its short-term rate (its equivalent to the Fed Funds Rate that the Fed raises here in the U.S.) by a full 1/2% yesterday. It shocked many observers because Europe is facing a banking crisis that is potentially much worse than what we face here in the U.S. (for reasons I won’t go into for brevity’s sake).Read More

Why ARM Rates Are So Close to 30-Year Rates

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Apparently, in 2002, it was “Hot In Herre” – or at least it was according to Nelly. I, however, had no idea because I had never heard the song, and […]Read More

Inflation & Rates Increase But Industry Experts Still Bet On Low Rates

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The current surge in commodity prices such as wheat, nickel, copper, and oil is fostering doom and gloom predictions – of mass shortages and runaway inflation. So, in light of that, why is Raoul Pal, the founder and CEO of “Real Vision” buying bonds in a bet that interest rates will fall? Pal thinks higher prices will crush demand and that a recession is looming.Read More

Rates Way Down, When They Are Supposed To Be Up? What Is Going On?

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Rates have dropped precipitously in recent days b/c of the global sell-off in stocks. Once again, weak economies worldwide are spooking investors and causing them to sell stocks and move […]Read More

“Flight to Safety”; “Escrow Holdbacks” Return

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A “flight to safety” refers to the mass movement of investment funds from stocks to bonds (which are considered much safer investments). Yesterday’s “flight to safety” was triggered by Russia’s […]Read More