Asking the Right Questions
Janet Yellen grunging to Nirvana
Last week marked the 25th anniversary of the release of Nirvana’s iconoclastic album, Nevermind, September 24th 1991. The album catapulted the band and the genre of music into the commercial mainstream, something that was perhaps too much for front man Kurt Cobain to handle….
Key points from Janet Yellen’s speech
In April I wrote a blog “Central banks and the certain uncertainty paradox”, reminding everyone that these institutions are no more certain than anyone else about how economic conditions will unfold. Still, market participants continue to hang on every word from the leaders of…
Gold, scarcity and supernovas
“There is something a bit odd about the value we attach to gold. Throughout history people have gone to extraordinary lengths to get their hands on this most precious substance which is strange because it is isn’t particularly useful for anything…but it has got…
US Fed Policy: A Much More ‘Gradual’ Path
Global equity markets sold off sharply last week, as weak economic data outweighed the recent positivity generated by the prospect of more easing from the Bank of Japan (BOJ) and the European Central Bank (ECB). Much of the focus was on the US, as…
Shut gates in high yield bonds & the slide in oil
High yield bond funds: shut gates…. While the turmoil in the commodity markets has been on everyone’s radar for the last year, the deterioration in the high yield bond market has been rumbling beneath the surface. However, on Friday it began to bubble over…
Mario Draghi and the lower “lower bound”….
In September 2014, ECB President Mario Draghi cut interest rates on their main refinancing operations, the marginal lending facility rate and the deposit facility to 0.05%, 0.30% and -0.20% respectively. At the time Draghi confirmed that “now we are at the lower bound, where…
Retirement Planning Considerations Amidst the Market Noise
The headline news has been dominated by Greece over the last few months, the closure of Greek banks and pictures of queuing pensioners all adding to the sense of fear among ordinary investors planning for retirement. The uncertainty and the risk of contagion across…
Greek ship stranded at sea without a paddle…..
I’ve written on the Greek drama quite a bit recently, as this crisis has been needlessly dragged out and now appears to be heading for a disorderly eruption, the extent of which Europe’s leaders may be underestimating. The decision by the Greek Prime Minister…
Long Dated Bond Funds: Beware of the Risk!
Recently, we have seen more pension scheme members expressing an interest in long dated government bond funds, ironically just as yields have started turning. While investors are clearly being attracted by the returns of the last 3 years, the near 10% decline over the last…
Government bonds signal liquidity warning….
Liquidity is defined as the degree to which an asset or security can be bought or sold in the market without affecting the asset’s price.
