Tag archives: Federal Reserve

Why The U.S. Interest Rate Hike Worries Some Investors

Last update on Jan. 15, 2016.

Image credit: Creativa Images / Shutterstock.com

 

At the beginning of every month, I brief members on how MoneyGeek's regular portfolios have performed and comment on the state of the financial markets. In this update, I’ll explain how some investors see higher U.S. interest rates affecting companies and the global economy, and how such effects could influence the price of stocks and bonds.

 

Performance of Regular Portfolios

The performance of MoneyGeek's regular portfolios for the month of December 2015 were as follows:

 Last MonthLast 12 MonthsSince Apr 2013
Slightly Aggressive ...

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Is The Slide In Bond Prices Just Beginning?

Last update on July 6, 2015.

Money under mattress

"If I had an easy way, and a non-risk way, of shorting a whole lot of 20- or 30-year bonds, I’d do it." - Warren Buffett

At the beginning of every month, I brief members on how MoneyGeek's regular portfolios have performed and comment on the state of the financial markets. In this update, I talk about why bond prices have been going down recently.

 

Performance of Regular Portfolios

The performance of MoneyGeek's regular portfolios for the month of May 2015 were as below:

 May 2015Last 12 MonthsSince Apr 2013
Slightly Aggressive  +2.8 ...

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Weekend Roundup: Debt Ceiling, Non-Taper, Fed Chair

Last update on Sept. 20, 2013.

National Regulator: Most people agree that a national securities regulator would be beneficial for everyone, but provinces just don't want to give up that power.

 

Every Friday, we bring you noteworthy news articles that affect your investments. 

Debt Ceiling Fight Is Escalating

Polls say that Republican voters know that not raising the debt ceiling will harm the economy. Nevertheless, they still don't want to raise it. Trouble is, 'harm the economy' is a euphemism. Economists agree that if the U.S. does default, it's much more likely to be a catastrophe, which brings us to ...

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Weekend Roundup: Larry Summers, Putin, Unemployment

Last update on Sept. 6, 2013.

 

Larry Summers: The New York Times, and many other economists have a bone to pick with this guy.

 

Every Friday, we bring you noteworthy news articles that affects your investments.

 

New York Times Urged Congress Against Appointing Larry Summers

Newspapers are not usually this vocal about their views on political nominations, especially for the role of the Federal Reserve chair. But I guess the newspaper felt that the stakes are too high for the U.S. economy, so they decided to act. Some economists think that appointing Summers will stunt the economy.

Putin Pledged To Support Syria ...

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Weekend Roundup: Nasdaq Halt, Taper, Emerging Markets, Mortgage Rates

Last update on Aug. 23, 2013.

Nasdaq

 

Every Friday, we bring you noteworthy news articles that affects your investments.

Technical Glitch Halted Trading On Nasdaq For 3 Hours

The little glitch meant that you couldn't buy or sell stocks like Apple for 3 hours. Big deal, right? Well, it is. 6.25 million shares got traded per day on the Nasdaq in 2010, which means that the closure probably prevented tens of millions of dollars worth of trades from going through. This is making investors more nervous about not being able to trade when they need to.

The Federal Reserve Is On Track To Taper ...

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Weekend Roundup: China, Taper, Budget Surplus, Glass-Steagall

Last update on July 19, 2013.

 Former senators Carter Glass and Henry Steagall

Picture: Former senators Carter Glass and Henry Steagall

Every Friday, we bring you noteworthy news articles that affects your investments.

Chinese Import And Export Data Was Discouraging

When a country imports and exports a lot, that's usually a good indicator that the country's economy is healthy. This is especially true for China, which grew by importing raw materials, and exporting finished goods. This past week, data came in suggesting that their imports and exports are slowing down, which are making people nervous about the state of their economy.

Bernanke Calmed Markets About Taper

The chairman of the ...

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5 Ways The Fed's Tapering Is Hurting You

Last update on July 4, 2013.

In my last post, I explained that 'Quantative Easing' isn't really money printing per se, but rather an asset swap - you're exchanging long term bonds for cash. In the process, they've driven down long term interest rates to historical lows.

For the last few years now, The Federal Reserve (the central bank of the U.S. with the authority to print money) has been buying up long term debt at the pace of $85 billion per month.

That's a lot of dough.

On June 19th, the Federal Reserve (i.e. the 'Fed') released a statement, and ...

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Why 'Quantitative Easing' Isn't Money Printing

Last update on July 1, 2013.

A couple of years ago, you couldn't read financial news without reading someone say

'Buy Gold! The U.S. is printing Money! Hyperinflation, here we come!'

2 years later, here we are. Gold has gone back down from a high of about $1,900 an ounce, to about $1,200 an ounce where it sits today.

On the inflation front, hyperinflation hasn't materialized at all. Just take a look at this graph. In fact, the Federal Reserve (i.e. the entity that is supposedly 'printing money'), is doing everything it can to fight deflation, which is the opposite ...

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Weekend Roundup: Taper, China, US Economy and Gold

Last update on June 28, 2013.

Chinese Yuan

On every Friday, we'll bring you noteworthy articles that affects your investments.

Krugman blasted the Fed for the 'taper'

He argues that the Federal Reserve jumped the gun. By indicating that they're thinking about paring back bond purchases, the Fed effectively drove long term interest rates higher at a time when the economy still needs it.

Investors were worried about China's financial sector

In China, not everyone can get a loan from a proper bank. As a result, many Chinese businesses turned to alternative institutions to borrow money. Now, there are fears that the shadow banking system ...

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