Sauce For The Goose

Investors have been mulling the potential demise of the bond market for years. And after a 35-year bull market run in Treasuries, at least some sort of sustained reversal in interest rates should not be ruled out in the coming years. But what sometimes accompanies these dire predictions for the bond market is an equally rosy outlook for the stock market. While the stock market emerging unscathed from a bond market rout would certainly be a nice development, it is far more likely that an unraveling of the bond market goose would likely spill all over onto the stock market gander.

Please click on the link to read more of my article on Seeking Alpha.

Ebb Tide

The tide has certainly come rushing in for a select group of asset classes in 2016. Their sharp upward climb has been inspired by a shift in monetary policy sentiment from the U.S. Federal Reserve from hawkish to dovish starting in January. But after planting a rewarding kiss on investor shores, will these very same asset classes roll back out to sea once the Fed resumes a more hawkish policy stance?

Please click on the link to read more of my article on Seeking Alpha.

The Drugs Don’t Work

How much longer can the insanity continue unchecked? It has been nearly a decade now since the outbreak of the financial crisis. And it has been nearly two decades now since the technology bubble. Yet the same misguided policy arrogance that delivered us into the last two messes and threatens to propel us into a third continues on completely unchecked. At what point will the appointed policy makers to which we are at their mercy finally realize that repeatedly doubling down on policies that are not working ends up causing far more harm than good in the end? The time is long overdue for a new approach to monetary policy. The question is exactly when such a change finally occurs, and at what cost.

Please click on the link to read more of my article on Seeking Alpha.

Why The Fed Must Raise Rates In September

Success in banking is about so much more than financial statements and balance sheets. It is also about confidence and respect that those that are overseeing these financial institutions and their associated markets have the wisdom and discipline to do what is both right and necessary, even if the act of doing so can be both surprising and uncomfortable at times. Unfortunately for the U.S. Federal Reserve, in their undying efforts to be as accommodating and supportive as humanly possible, they have effectively lost the confidence and respect of the financial institutions and markets that they have been assigned to oversee. Such loss of confidence is deeply problematic, as it undermines the potential efficacy of their future actions when they may be needed most. As a result, it is imperative for the health of the financial system that the Fed reclaims respect as soon as possible. And moving to act with a 25 basis point interest rate hike at their next meeting in September would be the best and most direct route in doing so.

Please click on the link to read more of my article on Seeking Alpha.

World’s Best Bonds

The U.S. Treasury market remains a consistently strong performer despite the recent surge in U.S. stocks. But despite recently strong gains coupled with historically low yields, U.S. Treasuries remain among the most attractive investments in the fixed income space.

Please click on the link to read more of my article on Seeking Alpha.


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