Going into 2024 the CSPM™ asset allocation model looks like this: Equities overall, are rich. Long-Term Bonds face supply headwinds from large increases in debt and credit expansion. Shorter-Term Bonds and cash equivalents have attractive yields. Credit Spreads on Corporate Bonds are historically tight, agency mortgage spreads offer value. Allocation to[...]
Tag: Fed
Heightened Investment Risks Demand Asset Review. Liquidity Paramount.
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Longtime Preachers of “Don’t Fight The Fed” Now Fighting The Fed
April 13, 2022 Wall Street strategist have historically preached the old adage "don't fight the Fed." In a nutshell, this advice conveys that investors should simply position their portfolios to benefit from the direction the Federal Reserve is steering the economy via its policy decisions. The wholehearted embrace of this advice was especially true over the past couple of decades whereby[...]
BLOWBACK – Sanctions Unleash Global Counter Attacks, Pent-up De-Dollarization Desires Emerge
March 31, 2022 For over two decades, numerous financial commentators have predicted the US Dollar status as global reserve currency would eventually diminish then end. While this position was dismissed by most in the mainstream financial media and academia, it should not be shocking since all past reserve currencies were eventually displaced. The abuses, manipulations, and chicanery[...]
Will Russia Turn to Gold to Save the Ruble? Possible Pivot in the Financial War.
March 24, 2022 Originally published by QTR's Fringe Finance Russia Will Backstop The Ruble With Gold. The backstopping of the Ruble with gold can come in many forms and doesn’t have to be a direct peg from the Ruble to gold - it can include accepting payment for oil in gold. Now that Russia has come right out and said it will only transact in Rubles when selling oil to[...]
Bo Polny – It’s All Down from Here, Except Gold and Silver – Audio Interview
Bo Polny talks with Kerry Lutz and provides his perspective on major markets. He’s calling for a major sell-off on the dollar and treasuries. He also sees a major sell-off on world stock markets as well. It’s going to occur before summer and this will lead to a major increase in gold and silver prices. He believes that you need to be long gold and silver and short the dollar and bonds.[...]
The Great Disconnect——Central Bank Driven “Markets” Have Nothing To Do With Economics
by David Stockman The German bund yield is soaring like a rocket today. After touching on the truly lunatic rate of 5 bps only a few weeks back, it has just crossed the 60 bps marker. Needless to say, when a blue chip 10-year bond widely held on @95% repo leverage moves that far that fast—–there is some heavy duty furniture breakage happening in fast money land. But don’t cry[...]
“Losses Will Be Devastating,” Triggering A Derivatives Blow-Up And Worldwide Collapse
Today the man who remarkably predicted the collapse of the euro against the Swiss franc warned King World News that "losses will be devastating," triggering a derivatives blow-up and worldwide collapse. Egon von Greyerz: “Eric, I’m looking at the bond markets, worldwide. What we’ve seen now both in the U.S. and in Germany is that rates have increased pretty fast in the last few[...]
How this Debt-Addicted World Could Go the Way of the Mayans
Paying a high price for too many elites and their ‘frivolous cravings’ Nowadays many countries’ social and political structure relies on debt-driven consumption and increasing levels of entitlements. Blame the policy makers. To drive economic growth, boost living standards, and manage growing inequality, policy makers have used debt and monetary tools to create economic activity. This has [...]
When All News Is Bad News
by John Rubino on April 21, 2015 One of the defining traits of financial bubbles is the willingness of traders and investors to interpret pretty much everything as a buy signal. Rising corporate earnings mean growth, while falling profits mean easier money on the way. War means more revenues for defense contractors and easy money for everyone else. Blizzards means consumer spending will[...]