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In just 4 years, the trend (and investment theme) of low interest rates has been turned on its head. During this time, home and auto loan rates have gone from consumer-friendly to unfriendly. Quite...
Inflation risk is topical again, as I’ve been discussing this week. As a result, the bond market is demanding a higher yield premium to compensate for the possibility that inflation will be higher...
The backup in bond yields since mid-September did not surprise us. But it has surprised lots of other financial pundits, who are warning that this could be bad news for stocks. It could be,...
The risk of reflation has been bubbling for several months and yesterday’s economic news on prices in the services sector fueled new concerns. The bond market is paying attention, or so the renewed...
The question asked of us most often recently: “Why are bond yields rising?” After verbally answering it plenty of times, it’s time to put our answer in writing for everyone to see. The answer will...
The US economy continues to roar. December's ISM purchasing managers survey showed that services activity remains strong. The JOLTS data, albeit a bit stale from November, showed job openings jumped....
There’s little about recent history that reflects stability, with at least one exception: the average trailing payout rate on a globally diversified portfolio. There’s been a lot of churning in...
The market premium for the US 10-year Treasury yield rose in October relative to a “fair value” estimate calculated by CapitalSpectator.com. The increase marks the first time since April that the...
The job report on Friday delivered a big downside surprise with just 12k jobs created in October. Certainly nowhere near my model’s estimates, but then again, given the size of revisions over the...
Will the summer rally in bonds survive the autumn? Fresh doubts are bubbling as the market reconsiders a range of risk factors, including renewed skepticism about the Federal Reserve’s commitment to...
Stocks were modestly lower, but there was a clear risk-off tone throughout the day as rates rose sharply, along with the dollar. The CDX high-yield credit spread index also moved higher. Despite the...
The case for international diversification from a US-investor perspective usually centers on how to carve up a global equities allocation. The global bond footprint, by contrast, tends to be an...
The market premium for the US 10-year yield over a “fair value” estimate calculated by CapitalSpectator.com continued to narrow in September. The smaller spread extends a downside trend in recent...
There are no absolutes in economic forecasting. Thinking otherwise eventually leads to trouble. Case in point: the recession warning triggered nearly two years ago by an inverted Treasury yield curve...
The 10yr-2yr yield curve has un-inverted; yet in the media? Crickets Slowly I toined [cue Brooklyn accent], step by step… The 10yr-2yr yield curve un-inverted last week, turning from inversion to...