— Fed week this week and the ritual continues. — Armageddon continues on hold rebuffed by continuing good economic and earnings reports. — A few words about inflation — If you believe the Fed’s rhetoric the 10-year US treasury note near 5% yield is the deal of the decade. I composed this piece on the weekend. Even with…
Tag: fed funds
Interest rates and stocks: Heads you lose … Tails you lose!
The Great Conundrum In January of 2020 the 10-year US Treasury opened the new year trading with a yield of 1.8%. The S&P 500 was on its way to a 4.6% gain and a new record high by February. Then Covid-19 hit and in the flight to safety that followed the 10-year yield went below one half…
Nothing inspires confidence like an emergency Fed funds rate cut
— During the entire panic on the downside you had to ask ‘are things really that bad out there?’ — One also has to ask how does a cut of 50 basis points on the Fed funds rate positively impact the trajectory the COVID19 epidemic. — Fortunately, the answer may be ‘no’ to bullet number…