Jay Powell may think he is Paul Volcker, but he is not Paul Volcker.
If you’ve been paying attention to prices of gold and gold mining stocks the last few weeks, you probably noticed that they go up when the stock market goes up, and they go down when the stock market goes down, limiting the usefulness of gold as a hedge. This isn’t the first time this has happened.
We are panicking over interest rates. Estimates of how high the Federal Reserve will raise its main rate to get inflation under control seem to increase daily. The yield on the benchmark 10-year U.S. Treasury note has surged 1.25 percentage points this year, inflicting historic losses on bondholders.
Interest rates are structurally set up to go higher.
Today, we’re talking about why the war in Ukraine was such a dud for the bears.
There is a genre of investment research that continuously predicts economic disaster that I call “macro doom.” It has become very popular. It seems that everyone is an expert in macroeconomics today, and they’re all predicting a bust of some kind.
Financial assets such as stocks and bonds are things that we want. Hard assets, taken to mean things along the lines of fossil fuels oil, agricultural products and other commodities, are things that we need. When the price of the things that we need go up and the price of things that we want go down, it creates economic misery.
Commodity prices have soared the last two weeks as a result of the Russian invasion of Ukraine, drawing novice investors looking to make a quick buck. Many are already getting burned by their lack of knowledge.
The U.S. Securities and Exchange Commission is worried about a lack of oversight in how large, private companies raise capital.
There was a lot of yelling when I was there from 1999 to 2008, but there was a lot of a bank’s own capital being committed and a lot of risk being transferred. I probably did more yelling than anyone, and I got yelled at plenty. But at the end of the day, nobody took anything personally.
One of the interesting aspects of the brief selloff in stocks in late November was that breadth deteriorated markedly. The broad indexes were only down a few percentage points, but there were more than a thousand stocks making 52-week lows on a daily basis.
Young Wall Street analysts are benefitting from the war for talent among investment banks.
Robinhood Markets Inc. has been at the forefront of the democratization of finance, which is the idea that an average Joe can play in the stock market alongside the professionals.
while big, sweeping forecasts are the ones that draw the headlines, the ones to pay attention to are those that only look one to two months ahead or 10 to 20 years ahead.
One of the big criticisms of ESG is that the criteria for determining which companies are trying to do the right thing are overly broad and subjective.
All of the increased tax burden falls on the top 2%, a problem for a couple of big reasons, the author maintains.