Tag Archive: bond market

Wait, What?

The highly anticipated Fed policy meeting has now come and gone, with Fed Chief Jerome Powell set to deliver his press conference. The central bank voted by a margin of 9-1 to hold the Fed Funds rate steady. The central bank did, however, still hint at the potential for rate cuts should conditions warrant such a move. The FOMC removed the word “patient” from its outlook, in a move that could signal a large degree of flexibility by the central bank. Some analysts have suggested... Continue Reading

Risk Aversion Accelerates – This Could Be It

The gold market is finally seeing some significant upside as risk aversion accelerates. The metal has now broken out of its recent trading range and could potentially set its sights on a new high for the year in the weeks ahead. There are numerous issues behind the recent ascent, and many of these issues could potentially fuel the next major global recession. The ongoing U.S./China trade war appears poised to continue. After a deal was reported to be close in recent weeks, both sides have... Continue Reading

Who to Believe: Stocks or Bonds?

As the benchmark S&P 500 stock index flirts with recent all-time highs once again, another market is making a run higher as well-the bond market. Although stocks have a tendency to dominate the headlines and financial media, the bond market dwarfs the equities market in size. While stock investors have been able to shrug off numerous potential geopolitical issues and some weakness in economic data, bond investors appear to be of a different opinion. In fact, the bond market appears to be signaling potential trouble... Continue Reading

Are Gold Investors Watching the Right Market?

The stock market is frequently mentioned when gold is discussed in the financial media. This makes perfect sense, given the fact that gold is often bought during times of market duress and may underperform when equity markets are headed higher. Although stocks remain not far from recent all-time highs, there could be something even more critical to financial markets in the near-term. The yield on the 10 year note is not far from crossing an important line. World renowned money manager Bill Gross believes that... Continue Reading

World renowned investment manager discusses gold’s place within a portfolio

In a recent interview with the World Gold Council, Allianz chief economic advisor Mohamed El-Erian discussed the potential role gold may lay within a portfolio. He stated “As part of a diversified portfolio allocation that includes a higher-than-usual cash allocation, gold can play an important role in overall risk mitigation. It can also provide a notable upside should the enormous amount of central bank liquidity injection gain traction and result in higher inflation, be it actual or expected.” El-Erian went on to state “A growing... Continue Reading

World Bank to Become First SDR Bond Issuer in China

The People’s Bank of China recently approved the inaugural issue of bonds denominated in SDRs (Special Drawing Rights) by the World Bank. This is the first bank to receive such approval and represents the beginning of the SDR bond market in the world’s second largest economy. In issuing the SDR bonds, the World Bank is expanding its product base as it looks to open and develop new markets. Why is this important? This new issue of SDR bonds in the Chinese market may yet be... Continue Reading

The Spread of Negative Interest Rates

The spread of negative interest rates has been highly publicized in recent months in a trend that could, unfortunately for depositors, continue. While much has been made of low rates in the U.S. in recent weeks while the ten year note sits around 1.4%, the fact is that in some countries depositors now not only receive zero yield but must pay for the privilege of having a bank hold their money. Some European banks began cutting rates below zero in 2014, and Japan has followed.... Continue Reading

Gold Poised for More Gains

  The gold market is showing some significant signs of strength recently that cannot be denied. Price action on Friday was indicative of the significant underlying strength currently being seen in gold ­ and with good reason. Following the Employment Situation report for June, which showed non­farm payrolls adding an additional 287,000 jobs, gold saw some decent selling. That selling, however, was quickly met by willing buyers who happily scooped up gold on the dip. By late afternoon, gold was in positive territory for the... Continue Reading

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