The Markets Attention investors: U.S. interest rates may be moving up and it might happen this year. During last Friday’s speech at the Federal Reserve’s annual economic symposium in Jackson Hole, Wyoming, Fed Chairwoman Janet Yellen signaled that a rate hike is probably coming but, as usual, she didn’t offer any specifics about the […]
Last week, Wall Street was speculating about monetary policy with the enthusiasm of commentators trying to predict who will bring home Olympic gold. The Federal Open Market Committee (FOMC) is expected to introduce another rate hike before the end of 2016, according to the BBC, and it has just three opportunities to deliver the goods […]
It’s déjà vu all over again! The Chicago Board of Options Exchange (CBOE) Volatility Index, also known as the VIX, tracks the prices of options on the Standard & Poor’s 500 (S&P 500) Index. Since options often are used to hedge portfolio risk, the VIX is considered to be a ‘fear gauge’ that has value […]
Here’s a brain tickler for you: In July 2016, there were four. In June 2016, there were 10. Since 2008, there have been 673! What are they? If you guessed central bank rate cuts, you are on the money. Financial Times reported: “In the eight years since the collapse of Lehman Brothers, the world’s top […]
Like a cool breeze on a hot day, the post-Brexit market rally has soothed investors. The CBOE Volatility Index (VIX), also known as the fear gauge, fell significantly during the past few weeks, according to CNBC.com. The VIX measures investors’ concerns about future volatility. The lower the Index is; the calmer investors are about the […]
“Start your engines,” was not in the Department of Labor (DOL)’s June Employment Report Summary, but it may as well have been. A positive jobs report revved investor optimism and sent U.S. stock markets sprinting higher last week. Job growth was strong in June with 287,000 new jobs created. That helped soothe worries raised by […]
When the yield on 10-year Treasuries finished last week at 1.37 percent, a record closing low, Barron’s called it a Kübler-Ross rally. Elizabeth Kübler-Ross was a Swiss psychiatrist whose research identified the five stages of grief: denial, anger, bargaining, depression, and acceptance. According to Barron’s, institutional money managers have reached the final stage of grief […]
Second quarter ended with a spectacular finale of Brexit-inspired market volatility. Investors typically welcome sharp market movements with about the same level of enthusiasm that canines show for fireworks. However, recent market agitations highlighted a key tenet of investing: Volatility often creates opportunity. Following an initial Brexit sell-off, global markets rebounded. Last Friday, Financial Times […]
Surprise! Britain is leaving the European Union (EU) after 40 years of membership. Last Thursday, almost three-fourths of voters in Britain – about 30 million people, according to the BBC – cast ballots to determine whether the United Kingdom would remain in the EU. By a slim margin, the British people opted out. Early […]