Bonds do not like economic strength, but love economic weakness. It makes sense. In a strong economy there is upward pressure on interest rates, and therefore on bond yields. When bond yields go up, their prices go down.
The big news today was the shelling of an armored Russian convoy by Ukrainian forces, which sent the markets down after a positive open. Gold was also hit and dropped below $1,300 before retracing its losses on the news.
Stocks reversed the slide this week, recouping a fair amount of the losses from the preceding three weeks and getting back to within striking distance of July’s all-time high. It seems like the pullback has ended even before many people could acknowledge it.
This Great Graphic comes from New York Federal Reserve via a tweet from NickatFP. On a quarterly basis, going back to the start of 2003, it shows the dollar level as well as the composition of U.S. household debt.
Of all the defaults through Argentina’s history, the one on august 3rd 2014 is the strangest to date. Moreover, its implications could spill over to the rest of global markets.
Investing is an inherently risky business with lots of uncertainties. At any given moment, the bullets can fly from any direction, and at a bare minimum, the investor hopes to emerge unscathed from the battlefield. But of course, the goal of investing is not just to break-even, but...
Cybercrime knocks almost a percentage point off global GDP growth, according to a study published last month by the Center for Strategic and International Studies (CSIS), a bipartisan think-tank with a strong reputation in international affairs and global security issues.
New economic data released by China's National Bureau of Statistics on Aug. 13 shows the supply of credit to the Chinese economy expanded by only $44.3 billion in July, the slowest pace in almost six years.
Over the course of the next two columns, I plan to finish up the recent look at BP’s Statistical Review of World Energy 2014. The final two columns will focus on renewable energy, and carbon dioxide emissions.
As any good market technician will tell you, rotations are the lifeblood of any bull market. The time to worry is when money stops moving from sector to sector and decides, instead, to shift en masse to a separate asset class like bonds or cash.