Veteran investor Mark Mobius said the recent spike in U.S. Treasury yields has room to run as market participants are underpricing inflation risks. The yields “can go much much higher,” Mobius said in an interview on Bloomberg Television, as investors won’t be buying Treasuries if their yields are far below the rate of annual inflation, which economists expect to come in at 7% f... read more
The stock market heads into 2022 at all-time highs. But according to famed investor Rick Rule, the new year could be filled with turbulence. “If you postpone a reckoning, you almost always have to pay back with interest,” Rule warned in a Q4 interview. The former president and CEO of Sprott U.S. Holdings believes that there will be serious consequences to all of the Fed’s easy mon... read more
The U.S. Federal Reserve has bitten the bullet: At their policy-making meeting next week, in recognition of persistent high inflation, officials will announce a speedier tapering of asset purchases that have been supporting economic growth. The aim is now to complete the program in time to be able to start raising short-term interest rates as soon as March should that prove necessary. But th... read more
Fed Chair Jerome Powell along with Treasury Secretary Janet Yellen appeared before the Senate Banking Committee yesterday to deliver their semi-annual reports. Approximately 34 minutes into the hearing, in response to a question from Senator Pat Toomey, Republican from Pennsylvania, Powell announced that he was retiring the word “transitory” to describe the inflationary forces that have... read more
Gold rebounded from a three-week low as traders weighed the spread of the omicron coronavirus variant against comments by Federal Reserve Chair Jerome Powell on the need to curb inflation. Most Read from Bloomberg China Cash Flowed Through Congo Bank to Former President’s Cronies Reliving the New York Subway Map Debate ‘Pension Poachers’ Are Targeting America’s Elderly Vete... read more
Unless you have the fortitude of a Greek God, peeling back the layers of our current "economic onion" will very likely bring you to tears. Looking back over the last several years could make a person argue that massive stupidity has been a huge factor in keeping the economy afloat. In short, those pulling the strings have constructed a false economy that is unsustainable and will at some point... read more
Inflation across a broad swath of products that consumers buy every day was even worse than expected in October, hitting its highest point in more than 30 years, the Labor Department reported Wednesday. The consumer price index, which is a basket of products ranging from gasoline and health care to groceries and rents, rose 6.2% from a year ago. That compared to the 5.9% Dow Jones estimate.... read more
While the Fed announced the start of its long-threatened taper program, the actual policy statement says “The Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee’s goals” (FOMC Policy Statement). In the press conference following the meeting, Jay Powell confirmed that tapering could be limite... read more
It's been "a mad world" out there with record-high equities, real estate and more. But the long-awaited surge in gold and silver is coming in the next six months, said Mike Larson, senior analyst at Weiss Ratings. "If you're in a world where many assets are over-valued, where real estate is extremely highly valued, stocks are extremely highly valued, and so on. What hasn't run up and remain... read more
Climbing mortgage interest rates caused another drop in mortgage demand for both refinances and home purchases. Total application volume fell 6.3% last week compared with the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($548,250 or less) increase... read more