The FED’s “protect the market at all costs” attitude minimizes the risk of a severe bear market but increases the risk for an inflationary environment. Trade deficits and low productivity are not good signs for the long-term, no matter the positive data from the labor market. Until the focus shifts from central banks to real… Read More »The Important Insights From The FOMC Minutes No One Is Talking About
The dollar has been positively correlated with stocks for the last 4 years which is unusual. Potential FED interest rate increases don’t make international diversification a great idea right now. Any sign of a U.S. recession should be a good time to think about international diversification with emerging markets. Introduction On big news sites like Bloomberg you… Read More »The U.S. Dollar: Should You Stick To It Or Diversify Now?
Bonds are becoming riskier as yields are falling. Inflation is at 1.2% and very likely to get higher as full employment is approached. The FOMC predicts stability which could create a great environment for traders. Introduction On July 6 the Federal Open Market Committee (FOMC) June meeting minutes were released. As they give clear insight… Read More »Watch Out: The FOMC’s Current Stance Could Impact Your Portfolio in the Long Term
An interest rate increase is hanging in the air but no one seems to find enough reasons to pull the trigger. The FOMC expects inflation to be at 2% and interest rates at 2.6% by 2018. Holders of long-term bonds might rethink their positions as interest rate increases could have severe negative repercussions on bond… Read More »An Analysis of and the Implication of the FOMC Minutes