Fed Week | Fallacy of Interest Rate Price Fixing
The Fed tells us that they attempt to establish a level of interest rates that is neutral with respect to the general price level. This is one in which the…
Can Gradual Interest-Rate Tightening Prevent a Bust?
We invest in the real world, not the theoretical one. But investment, monetary, economic, etc. theory is an important part of the investment process. We often think about macro trades, commodity,…
Interest Rate & Bond Update: iShares 20+ Years T-BondETF (TLT)
One could argue that the bond market is the most distorted market on plant terra today. Central banks around the world have been buying government and/or mortgage and/or corporate bonds…
Real Estate & the Headwinds of Higher Interest Rates
Real estate has performed far better than we expected since the financial crises. Did we think there would be some kind of recovery? Yes, but we thought it would look…
A Hike in the Fed Funds Rate: A Sure Thing?
For the past few weeks, the financial media has been talking about the March 15 meeting of the Federal Reserves Open Market Committee. About a month ago, Fed Funds Futures…