In a recent post, we speculated about what would happen when quantitative easing finally ends. This week we got a glimpse. After Federal Reserve Chairman Ben S. Bernanke said that…
Forever Blowing Bubbles
“I’m forever blowing bubbles, Pretty bubbles in the air They fly so high, nearly reach the sky And like my dreams they fade and die.” …
The End of QE?
The Fed’s quantitative easing program has been like that endless tub of popcorn or vat of soda that those with large appetites buy at the theater. It goes on and…
The Other QE
It’s not QE3, the Fed’s highly anticipated and much discussed quantitative easing program, but the European Central Bank’s (ECB) bond buying program is having a similar impact. Stock markets worldwide…
Over Fed
To QE3 or not to QE3? That is the question the Federal Reserve Board has been pondering for months … or at least Fed observers think it’s being pondered. But,…
Dancing With A Cow
While Europe’s sovereign debt crisis has beaten down the U.S. stock market, it has helped the bond market. Because the European bond market is in such poor shape, U.S. bonds…
Pretzel Logic
When Fed Chairman Ben Bernanke said recently that he did not expect The Fed to initiate any additional monetary stimulus, apparently stock traders weren’t listening. The recent run-up in stock…
Bad News Boosts the Market
In the strange world of investment management, bad news is often good news. That was the case last week, as the S&P 500 gained a hefty 3.7%, more than reversing…
Compared To What?
The U.S. dollar is the strongest it’s been in a year-and-a-half. Is this renewed strength a sign of American economic strength? In a way – but it’s all relative. The…
T-Bills, Munis Are Hot … Compared With Everything Else
You could say that the yield on three-month Treasury bills has quintupled this month, which would explain why they are in demand. Or you could say that yields on three-month…