Some investors finally see a light at the end of the monetary tunnel; others remain blinded by a juxtaposition of strongly positive and negative economic news. The Fed has aggressively doubled the size of its balance sheet by implementing a wide variety of facilities to enhance market liquidity and ease credit market conditions. Swap lines […]
After a two-month spring reprieve from a brutal 2008 start, markets again turned choppy. Defensive investors are contemplating potential summer surprises for the global capital markets. Commodity exporters such as Canada, Australia, Brazil, Russia and the OPEC nations continue their strong economic spurt as rising commodity prices make their oil and mining resources ever more […]
The sentiment du jour is one of suspicion. There is still a crisis in trust and confidence. Few investors believe that earnings disappointments and asset write-offs in the financial sector are over, even though bank stocks have collapsed over 40% peak-to-trough and several bank CEOs have lost their jobs as a result of colossal losses. […]
The worst is not over in the housing market. To date, problems and media attention have centered upon flimsy underwriting standards and weak housing prices within the $1 trillion subprime market. However, even prime loans are experiencing an increase in late payments and defaults. Therefore, as both subprime and prime loans worsen, expect continued deterioration […]
September was a headline grabbing month for investors.
- Treasuries strengthened
- Housing wilted further
- Stocks strengthened
- Commodities (including oil and gold) weakened
- Some notable hedge funds had remarkable trouble
The financial market’s resilience bodes well for domestic equity and fixed income markets.
Treasury prices continued their rally, bringing benchmark yields to six month lows. The market has been buoyed by investor sentiment […]