Matthew Kerkhoff's picture

By adjusting the policy rate (the federal funds rate), the Fed alters financial conditions, which then influences the behavior of businesses and households. These changes impact a variety of decisions, including how much to consume, produce, and invest.

John Mauldin's picture

Inflation is a much misunderstood phenomenon. Most people assume that a CPI rate of 10% means that most prices are rising by a similar amount. In reality, some prices may be falling even while others soar.

Bill Witherell's picture

The slowdown in China’s economy, which in the first half had been one of the negative factors affecting the global economy and equity markets, appears to have come to an end, with Chinese manufacturers reporting...

Cris Sheridan's picture

In a recently published interview with Financial Sense, David Marsh, Co-Founder and Managing Director of the OMFIF, explains how central banks are now suffering the consequences of their own low-rate policies and, like everyone else, moving "herd-like" into the stock market.

Sober Look's picture

The Beveridge Curve, a scatter plot of job openings vs. the unemployment rate, continues to show a structural shift in US job markets.

Thomas J Smith CFA's picture

It is curious that for many the biggest fear right now is that prosperity will break out. For much of the bull market people have lamented the lack of jobs growth or growth of any other type for that matter.

Doug Short's picture

Market Cap to GDP is a long-term valuation indicator that has become popular in recent years, thanks to Warren Buffett. Back in 2001 he remarked in a Fortune Magazine interview that "it is probably the best single measure of where valuations stand at any given moment."

Jeffrey D Saut's picture

By the time the 2nd quarter was complete 2014 was in the process of being transformed from a flat year for risk assets and a strong year for fixed income into a much more encouraging year for the former and perhaps less so for bonds. Indeed if the SPX index were to simply replicate its first +6.05% half performance...

Marc Chandler's picture

The headline of a recent Financial Times article reads "Paris rails against the dollar's dominance." It could have been written nearly any time in the past half century. After all it was a former French President Giscard d'Estaing...

FS Staff's picture

Noted market technician Tom McClellan says we’re seeing a “big warning sign” develop between the VIX and the S&P 500, with the strong possibility of a market selloff this month. He also talks about his projections for a bull market peak and a bottom for gold.