Reaction to Fed Rate Cut – Not What You Thought?
https://youtu.be/8GHchWRDTVc On September 18th, 2024, the Federal Reserve cut interest rates by .5%. The market reaction may not have been what you expected. Is this a set up for a rising commodity environment like the late 1970s? Watch our market update to find out.
FED is Already Easing – But is there enough cash to power the market higher?
https://youtu.be/K7Yc-JSZ1-w Inflation up, Inflation down. It has been a yo-yo year so far on monthly inflation figures. The Federal Reserve is already easing. But are investors tapped out?
Federal Reserve is Tightening
https://youtu.be/e4cWcFAWVRs Over the past 6 months, the money supply has not grown and the Federal Reserve has reduced their balance sheet by $200 billion. As the government continues to issue more Treasury Bonds to finance the deficit, private investors need higher interest rates to be enticed to buy Treasuries. This is a classic example of […]
Market’s Reaction To Rate Hikes Is Not Like 1999!
https://youtu.be/KTcqyIhx90s Today’s market reaction to rate hikes is starkly different than what happened in 1999. The stock market volume is saying the correction is not over yet.
Federal Reserve’s Impact on the Bond Market
https://youtu.be/8ibLEWWiJt8 The Federal Reserve has blown out their balance sheet to almost $9 trillion and currently own 25% of all agency mortgage securities. Watch our video to understand why this is not a time to own the “general” bond market.
Federal Reserve – Way Behind the 8-Ball
https://youtu.be/vmntgvmunq8 Real interest rates are negative like they were back in the 1970s. While inflation is at historically elevated levels, the Federal Reserve is doing nothing to combat it. Watch our market update to learn about the negative affects on owning bonds in this environment.
Keep the Fed Independent
Like many others, we have complained about many of the decisions the Federal Reserve has made in the past. However, we would rather have an independent Federal Reserve than one swayed by politics. Historically, the more independent the central bank, the lower the rate of inflation.
Fed is Falling Behind the Curve
Short term interest rates should be much higher – possibly 5%. The Federal Reserve is behind the curve and we believe this will lead to inflation.