Tag: Monetary Policy

My Greatest Concerns for the Decade to Come (Part 2)

As a portfolio manager, Bill Valentine has two overwhelming concerns about the investment markets in the decade to come. This month, he discusses the second one.

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Don’t Hate on Bonds Just Yet

As we close 2016, every broker and investment adviser is bracing themselves for the onslaught of gripes about bonds. Listen as to why, and avoid the mistake that many will make by ditching this important asset class.

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Is the Election a Black Swan?

Based on the behavior of the stock market, and price of options used to hedge, there is great consternation about the Presidential election next week. Will the election outcome be a “Black Swan” event? Just how should investors prepare for the outcome and the possibility of a market crash?

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As regards China and Greece

The possibility of Greece leaving the Euro has created turbulence across all markets. A continent away, the Chinese have their own maelstrom in the form of a mini stock market crash. What does this mean for investors? We have the answers this week as Bill discusses the impact on investors, as regards China and Greece.

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You Won’t Believe What Rates Are Doing!

We have talked about the end of Quantitative Easing and the possible negative effects of the Fed’s actions on interest rates and bond markets. So where are we now?  Incredibly enough….”You Won’t Believe What Rates Are Doing!”  

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We Are Making A Major Bond Shift

Let’s talk about the Taper.  Yes, the Federal Reserve is in the early stages of a resumption to normal monetary conditions.  Specifically, they have begun reducing the amount of monthly open market bond purchases, and eventually they’ll no longer be buying bonds.  Eventually, they will begin to raise interest rates. How will this affect investors’

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Outlook For 2014

With the New Year behind us, we look to hear Bill’s thoughts on what might be in store for 2014.

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The Market Is Like A Petulant Child

This week, the Federal Reserve continued its strategy of giving very advanced warning that its extraordinary easy policy will eventually be wound down, as we discussed in our “Market Message” on May 31, “The Worm Has Turned.”  This is fundamentally good news. It affirms the Fed’s awareness of the need to stop bond buying, and

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Bernanke’s Hurt Locker

There is no more important issue facing our economy, indeed the world’s economies, and the future performance of the markets than the reversal in Fed policy that will happen over the next several years.  The stakes couldn’t be higher. Do too much, put us into contraction.  Do too little, create inflation. For now, the duty

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The Worm Has Turned

A few days ago, Federal Reserve Chairman Bernanke took what I believe to be the first step in ending Quantitative Easing (the massive money creation / bond buying program dating to the depths of the Financial Crisis).  Chairman Bernanke’s seemingly subtle mention that the Fed will stop easing if the economy continues on its current

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