What the Fed’s biggest rate hike in decades means for the bear market in bonds

What the Fed’s biggest rate hike in decades means for the bear market in bonds

Historically bad. That’s how the mammoth $ 53 trillion US fixed-income market has performed this year as the Federal Reserve works to curtail high inflation threatening to wreck the economy. To turbo charge the effort, the Fed on Wednesday fired off its biggest benchmark interest rate increase in nearly thirty years. But what does that … Read more

Why stocks and bonds went into relief-rally mode after Fed’s jumbo rate hike

Why stocks and bonds went into relief-rally mode after Fed’s jumbo rate hike

Financial markets suffered an absolute bloodbath in the days leading up to Wednesday’s Federal Reserve decision, with stocks plunging and bond yields soaring in the wake of surprisingly hot inflation data – a sign that investors feared a more Volcker-esque reaction from Federal Reserve Chairman Jerome Powell and the rest of the Federal Open Market … Read more

In `fragile ‘financial markets ahead of Fed’s decision, some traders and strategists see risk of instant recession

In `fragile ‘financial markets ahead of Fed’s decision, some traders and strategists see risk of instant recession

Financial markets are on precarious footing since last Friday’s surprise reading on accelerating US inflation for May – with Treasurys, stocks, credit and currencies all exhibiting friction or tension ahead of the Federal Reserve’s interest-rate decision on Wednesday. According to strategist Ben Emons and trader Tom di Galoma, the process of transmitting monetary policy through … Read more

Stock Futures Slip Amid Retail Worries

Stock Futures Slip Amid Retail Worries

US stock futures edged down after a profit warning from Target cast a pall over the retail sector and Australia’s central bank spooked investors with a bigger-than-expected interest-rate increase. Futures tied to the S&P 500 declined 0.9%, reversing direction after the broad-market index closed up 0.3% on Monday. Nasdaq-100 futures fell 1.1%, pointing to losses … Read more

Investors may be in for this rude surprise: History shows inflation can take years to return to normal even when Fed hikes above 10%

Investors may be in for this rude surprise: History shows inflation can take years to return to normal even when Fed hikes above 10%

History can be a powerful tool, particularly in a high-inflation environment like this one in which no suitable economic model seems to apply. Inflation – running at 8.3% as of April, near a four-decade high – has stayed stubbornly persistent for a full year to the surprise of virtually everyone who tracks it. Now there’s … Read more

Exclusive: Fed’s Bostic says idea of ​​September pause is not tied to any looming market rescue

Exclusive: Fed’s Bostic says idea of ​​September pause is not tied to any looming market rescue

Atlanta Fed President Raphael Bostic, in an exclusive interview with MarketWatch, said his suggestion that the central bank take a “pause” in its push to raise interest rates should not be constructed in any way as a “Fed put,” or belief that the central bank would come to the rescue of markets. In a Tuesday … Read more

Fed’s quantitative tightening is about to arrive: What that might mean for markets

Fed’s quantitative tightening is about to arrive: What that might mean for markets

The Federal Reserve’s nearly $ 9 trillion portfolio is about to be reduced starting on Wednesday, in a process intended to supplement rate hikes and buttress the central bank’s fight against inflation. While the precise impact of “quantitative tightening” in financial markets is still up for debate, analysts at the Wells Fargo Investment Institute and … Read more

‘Not the decoupling we wanted,’ investor says as bitcoin slumps, stocks rise.

‘Not the decoupling we wanted,’ investor says as bitcoin slumps, stocks rise.

Crypto investors have long hoped for a “decoupling” between bitcoin and growth stocks, as the two assets often traded in tandem during the past several months. Both have suffered so far this year, as investors are concerned about soaring inflation, signs of a softening economy and the Federal Reserve’s tightening of its monetary policy. The … Read more

Morgan Stanley: ‘Hard landing’ odds jump as investors worry about economic growth

Morgan Stanley: ‘Hard landing’ odds jump as investors worry about economic growth

The probability of a “hard landing” for the US economy has jumped, with stock and bond investors worried about slowing economic growth, according to Morgan Stanley’s wealth-management division. “The stock- and bond-market downturn has advanced to behavior resembling a classic cyclical bear market rather than simply a correction,” said Lisa Shalett, chief investment officer at … Read more

Nobody Understands The Monetary System

Nobody Understands The Monetary System

“If you want to make an apple pie from scratch, you must first invent the universe.” – Carl Sagan Among the first objections that arise for anyone who has just learned about Bitcoin is “this is too complicated to understand.” And it’s true; private keys, block times, difficulty adjustments, UTXOs, uncensorable CoinJoin transactions, hash-something – … Read more