Tag Archive: taper tantrum

The Curve Is Missing Something Big

2021-10-21

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2021-10-21

What would it look like if the Treasury market was forced into a cross between 2013 and 2018? I think it might be something like late 2021. Before getting to that, however, we have to get through the business of decoding the yield curve since Economics and the financial media have done such a thorough job of getting it entirely wrong (see: Greenspan below).

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Tapering Or Calibrating, The Lady’s Not Inflating

2021-10-07

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2021-10-07

We’ve got one central bank over here in America which appears as if its members can’t wait to “taper”, bringing up both the topic and using that particular word as much as possible. Jay Powell’s Federal Reserve obviously intends to buoy confidence by projecting as much when it does cut back on the pace of its (irrelevant) QE6.

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Weekly Market Pulse: Time For A Taper Tantrum?

2021-09-20

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2021-09-20

The Fed meets this week and is widely expected to say that it is talking about maybe reducing bond purchases sometime later this year or maybe next year or at least, someday. Jerome Powell will hold a press conference at which he’ll tell us that markets have nothing to worry about because even if they taper QE, interest rates aren’t going up for a long, long time.

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Taper *Without* Tantrum

2021-08-17

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2021-08-17

Whomever actually coined the term “taper”, using it in the context of Federal Reserve QE for the first time, it wasn’t actually Ben Bernanke. On May 22, 2013, the central bank’s Chairman sat in front of Congressman Kevin Brady and used the phrase “step down in our pace of purchases.” No good, at least from the perspective of a media-driven need for a snappy one-word summary.

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Gold, Stocks & Commodities- A Complicated Correlation

2021-08-07

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2021-08-07

In our July 29 post titled How Gold Stacks Up Against Stocks, Property, Commodities and Big Macs! we showed readers charts of gold as a ratio to other assets and products. We discussed that gold competes with crypto and stocks for the investment dollars.

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BIS: A Paradigm Shift on Bond Yields?

2016-12-18

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2016-12-18

Review of recent BIS report. US election spurred a substantial change in sentiment. Equity and bond market reactions are roughly similar to when Reagan was elected, with the dollar, at least initially, stronger than then.

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