Last Friday the markets were expecting to see May payrolls rise by something between 160,000 and 190,000 new jobs. Instead the report was an upsetting shocker with only 38,000 new jobs and a downward revision to the previous two months. Stocks sold off at the opening, gold rose, talk of a fading expansion resumed and Read more […]
The S&P GSCI Gold lost 3.9% in May and has hit its lowest index level since January. This questions whether gold can recover after its biggest historical drop since 1981. According to the Federal Reserve, the U.S. economy is strengthening, labor market conditions are improving and inflation has been low in the expanding economy. According to Read more […]
In her testimony to the House Financial Services Committee on Tuesday, Fed Chairwoman Janet Yellen commented that with interest rates near zero the Fed must rely on such less traditional tools of monetary policy as forward guidance and asset purchases. Asset purchases are being phased out as tapering slowly ends quantitative easing. That leaves the Read more […]
The S&P/BGCantor U.S. Treasury Bond Index finished last week slightly down -0.02% after the market traded up at the end of the week in reaction to the Nonfarm Payroll number. This January indicator of employees on business payrolls (113k) disappointed expectation of 180k giving bond prices an upward push after three days of declines. Treasuries Read more […]
As we all know by now, Ben Bernanke is gone. He was focused on not having a depression on his watch so he pulled out all kinds of never-before-tried policy tools. Consequently, Janet Yellen will have to cope with the unintended consequences of QE — namely big unrealized losses in the Fed’s bond portfolio. Recently, I had Read more […]
