Tag Archives: Rates
Rising Rates and Inflation: Implications for Equities
Even a cursory glance at financial markets indicates that market participants are expecting some form of interest rate increase in the near future—there has been a sell-off in the 10-Year U.S. Treasury Bond market, and certain sectors that are expected to benefit from such a rate increase have gained. For instance, the S&P 500 Financials…
- Categories Equities, S&P 500 & DJIA
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- Equities, S&P 500 & DJIA
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Examining Low Volatility’s Performance in Various Market Environments
Rates, volatility and a broad market rally have contributed to the factor’s late-summer slump Late summer has not been fruitful for the low volatility factor. From July 6 to Sept. 9, the S&P 500 Low Volatility Index has fallen by 4.67%, while the S&P 500 Index gained 1.70%.1 This is in sharp contrast to the…
- Categories Factors, S&P 500 & DJIA, Strategy
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- Factors, S&P 500 & DJIA, Strategy
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Europe’s Short Rate Remains Unchanged
The European Central Bank left its key rate unchanged at a record low of 0.25%. There was speculation around whether the European Central Bank would cut rates again in response to the low level of inflation (0.7% in January). The central bank’s president, Mario Draghi, addressed the low inflation issue by saying that the measure…
- Categories Fixed Income
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Holding Bonds As Rates Rise
This week’s FOMC minutes revealed that almost all the members of the committee agreed that it was not yet time to begin tapering the Fed’s asset purchases. Many committee members urged additional caution, and advocated waiting until more concrete evidence about the economy’s recovery was available. The report continued to explain that the members generally…
- Categories Fixed Income
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- Fixed Income
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