Posts Tagged ‘ rate hikes ’

Inmates Running the Asylum; Fed Policy 8-years into Recovery

September 16, 2016
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Inmates Running the Asylum; Fed Policy 8-years into Recovery

Last week, a Fed Governor, made comments hitting Bloomberg, that the Fed was not a handmaiden to the markets. The comments, not part of a major speech, and difficult to find on Google, were striking, and provocative, conjuring memories of a period when this would never need to be said. Today’s baffling Fed communication strategy involves speeches of voting members, non-voting members, incorporates guidance, including some guidance that makes its way to the cover of the WSJ through Jon Hilsenrath, and includes a full blown black-out period where no comments are allowed at all. What happened to the time when there was a Fed meeting, and sometimes unexpected things happened? Post-financial crisis, markets are viewed as fragile by policy makers. The extent to which markets are actually fragile is debatable,...

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China Rate Hike Cycle Over?

August 11, 2011
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China Rate Hike Cycle Over?

Markets are on edge. This type of volatility is wrenching. It weighs on professional investors, it interjects more emotion into the investment process, while elevating stress, and causing people to lose sleep. The above is natural as money is made or lost at an outsized pace in hourly timeframes. This phenomena is measured by the VIX index which has surged to over 40 this week (was 15-25 the majority of the past couple of years). When you are stressed, tired, and emotional, you don’t think or research as clearly. Things get missed. There was some subtle news in the past week about August 10th being a key date for the People’s Bank of China with respect to making a decision on rate hikes. Stories were out last week from Xinhua...

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