Consumer Price Index (CPI) will be released this morning before the opening bell. And you can rest assured that between now and then, economists, financial experts, and talking heads will trip over themselves explaining what to expect. And as always... they'll breathlessly wonder how the markets will react. Here's the secret not one of them […]Interest Rates
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Chart of the Day: Nasdaq’s Near-Perfect Streak of Gains
Consumer Price Index (CPI) will be released this morning before the opening bell. And you can rest assured that between now and then, economists, financial experts, and talking heads will trip over themselves explaining what to expect. And as always... they'll breathlessly wonder how the markets will react. Here's the secret not one of them […]Negative Interest Rates Would Be Another Disaster to the Economy
The United States is in a recession, even if we'll have to wait for official confirmation at the Bureau.
With tens of millions of Americans out of work and many of these jobs not coming back, we're witnessing the most unprecedented economic event of our lifetimes.
I have said before that this is my generation's greatest economic challenge.
And by the time it is over it will fundamentally shift almost every industry in the United States.
We will see great moves by government to raise taxes and redistribute capital.
But those matters are largely fiscal.
What about monetary policy?
Right now, the U.S. central bank has moved interest rates to zero.
The April FOMC meeting was largely dedicated to preserving the Fed's benchmark rate to a range of 0% to 0.25%.
That said, there is a distinct possibility that interest rates could turn negative very soon in America.
I am not among the merry band of economists who embrace negative interest rates.
In fact, I believe they will be disastrous.
3 Ways to Protect Your Portfolio (and Profit) from Interest Rate Hikes
Last month, the U.S. Federal Reserve announced it would raise interest rates for a third time this year and intended to initiate a fourth raise in the near future.
The Fed's aggressive interest rate tactics rattled concerned investors who believed that regular interest rate hikes could put a sizable dent in their portfolios.
Here Are the Fed Rate Hike Odds
Right now, the Fed rate hike odds show the markets believe interest rates will be raised in June 2017.
In fact, almost 90% of investors think a rate hike will happen in June.
Are Interest Rates Going Up in June 2017?
The odds for interest rates going up in June 2017 are high.
The markets expect nearly an 80% chance the Fed will raise rates on June 14.
And if rates are raised, it's going to have an impact on your money...
Will the Fed Raise Interest Rates in March 2017?
Will the Fed raise interest rates in March 2017?
Right now, investors predict there's an 80% chance rates are raised.
Will the Fed Raise Interest Rates in November?
Will the Fed raise interest rates in November?
That's the most common question we've received in the last few days.
How U.S. Interest Rates Impact Your Money
U.S. interest rates will not be raised in September.
But the Fed wants to raise interest rates one more time before the end of 2016.
How to Protect Your Money Against Negative Interest Rates
So consider this strategy to hedge against negative rates...
How Near-Zero Interest Rates Are Killing the Economy and Threatening Your Retirement
The Fed's low interest rates are killing savers and retirees, costing them more than $470 billion in interest income.
And this "financial repression" is about to get even worse. Here's how...
What This Week's Federal Reserve Interest Rate News Means for Markets in 2016
After another dovish Federal Reserve interest rate statement from Chair Janet Yellen yesterday, global stocks and commodities are rallying.
Investors can now expect lower interest rates to last deeper into 2016.
Here's what that means for your money now....
Why I Don't Trust This Rally
Stocks kept rallying last week despite the fact that economic conditions are not improving anywhere in the world.
Investors predictably celebrated the European Central Bank's decision to lower interest rates further below zero and to buy more debt (including investment grade corporate bonds) in pa continuation of its desperate efforts to revive a moribund European economy.
That's bad, but it's not the immediate concern right now...
If You Want an Accurate Financial Forecast, Ask a Waiter
Many investors really start to study the markets this time of year in an effort to divine what's next for global markets and, by implication, their portfolios.
But for an accurate financial forecast, I turn to the world's top steak houses, which are known haunts for global traders anxious to blow off some steam and have a fabulous meal.
Today I'm going to talk about what's not"on the menu" - pardon the pun - and why. Then, I'll highlight an investment poised for profits as a result.
Here's what waiters can tell you that economics can't.
Take Profits - Then Take Cover
Investors should not be fooled by the strong performance of stocks last week. Fundamentals have not changed and still present major headwinds to a market recovery.
Oil ended the week at $29.64 per barrel (BTI crude), which is still too low to save struggling fracking companies from the junk heap. The junk bond market backed away from 10% yields but is still a disaster zone. And major hedge funds are still nursing double digit losses.
What we saw was a classic short-covering rally inside a bear market that has further to run. Readers should not let their guards down and let themselves get fooled into diving back into dangerous waters.
Negative Interest Rates Mean Your Government Is Betraying You
Nearly 500 million people now live in countries with official negative-interest-rate policies, and the United States may be next.
Seven years of zero interest rates have already severely punished savers; negative interest rates will finish the job by confiscating their capital for the mere privilege of depositing it in a federally licensed banking institution.