Category Archive: Finance, No picture

In Search Of The Allegedly Steepening Yield Curve

In Search Of The Allegedly Steepening Yield Curve

There has been a lot of commentaries recently about the steepening yield curve. Let’s investigate with pictures. The chart shows the spread between the 10-year treasury yield and the two- and five-year treasury yields. The steepening is hard to spot so let’s hone in. Detail of Yield Curve Steepening   Wait a second you say. […]
Purchasing Power And The Exchange Rate

Purchasing Power And The Exchange Rate

According to popular thinking, a key factor in the foreign currency exchange rate determination is the state of the balance of payments. Following this logic, an increase in imports gives rise to an increase in the demand for foreign currency. To obtain the foreign currency importers sell the domestic currency for it. As a result, […]
EUR/USD, GBP/USD Trade Lower After Underwhelming Brexit Progress

EUR/USD, GBP/USD Trade Lower After Underwhelming Brexit Progress

As the two-day EU Summit drew to a close Thursday, it would seem Brexit is still very much a work in progress. Although nothing was cemented either way – deal or no deal – officials from both parties expressed optimism and announced agreement over a few key issues. One such issue was the possibility of […]
Conference Board Leading Economic Index: “Economy Will Continue Expanding Through 2018”

Conference Board Leading Economic Index: “Economy Will Continue Expanding Through 2018”

The latest Conference Board Leading Economic Index (LEI) for September increased to 111.8 from 111.2 in August. The Coincident Economic Index (CEI) came in at 104.4, up from 104.3 the previous month. The Conference Board LEI for the U.S. increased again in September. Positive gains from most components, except for weekly hours in manufacturing and building permits, […]
5 Stocks To Make The Most Of A United Hawkish Fed

5 Stocks To Make The Most Of A United Hawkish Fed

Minutes from the U.S. Federal Reserve’s September meeting confirmed that the central bank is most likely to continue hiking benchmark lending rates at a gradual pace this year and beyond. Rising interest rates are bad news for most stocks as it raises borrowing costs and squeezes profit margin. On the other hand, banks and other […]
Trump: The Federal Reserve Is My Biggest Threat

Trump: The Federal Reserve Is My Biggest Threat

A discussion on the economy, the US Dollar, energy and transportation.  Audio Length: 00:15:18
On Mondern Monetary Theory And Some Odd Twists And Turns In The Evolution Of Macroeconomics

On Mondern Monetary Theory And Some Odd Twists And Turns In The Evolution Of Macroeconomics

Mainstream neoclassical economics is hooked on the idea of individual worker-savers as prime movers in capitalist market economies. As workers, individuals choose how much to work, determining the economy’s output; as savers, they determine how much of that output takes the shape of the economy’s capital investment. With banks as conduits channeling saving flows into […]
Weekly Unemployment Claims – Down 4K

Weekly Unemployment Claims – Down 4K

Here is the opening statement from the Department of Labor: In the week ending October 13, the advance figure for seasonally adjusted initial claims was 210,000, a decrease of 5,000 from the previous week’s revised level. The previous week’s level was revised up by 1,000 from 214,000 to 215,000. The 4-week moving average was 211,750, […]
Emerging Markets With Lower Risk? Think About Europe

Emerging Markets With Lower Risk? Think About Europe

2018 has been a challenging year for emerging market equities, coming on the back of 2017, which was quite strong. Some observations on the current environment: Year-to-date, emerging market equities are down 8.8% in U.S.-dollar terms. Nearly 5% of this cumulative decline came from the U.S. dollar strengthening against emerging market currencies. As of this […]
Euro Analysis: The Potential Impact Of Brexit And The Italian Budget Clash

Euro Analysis: The Potential Impact Of Brexit And The Italian Budget Clash

IS EURO STABILITY UNDER THREAT? As the UK and the European Union argue over Brexit, and Brussels clashes with Rome over the Italian budget, the future stability of the EU and the Euro is again in the spotlight. While the possibility of lasting damage to the single currency will likely be a concern for long-term […]