Bondification. The Quest For Yield And The Turning Point.
Thursday, 25 June 2015 | 5:49 am
When we buy an equity or a bond we buy a claim on a business but with differing payoffs, rights and obligations. The rational investor would first decide if the business in question was something they wanted to own before deciding on whether to own it through the equity or the debt. If indeed the
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EUR: Perspective on daily volatility and market rationality
Wednesday, 24 June 2015 | 11:17 pm
The behavior of the EUR may have been confusing. If we look at the daily volatility since the Greek situation began its crescendo we have seen the EUR weaken on good news (of a deal) and strengthen when there was bad news (of no deal.) This is not so irrational. Notwithstanding any plan for retaining
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When Will The Fed Shrink Its Balance Sheet? In The Long Run The Fed's Balance Sheet Will Probably Grow.
Tuesday, 23 June 2015 | 9:26 am
Analgesics are addictive. Since interest rates were deployed to manage the economic cycle we have seen the Fed Funds Target Rate decline, making lower lows and lower highs (1980, 1984, 1989, 1995, 2000, 2007) as the Fed has been repeatedly enlisted in the bailout of asset markets and the economy. Now that a new policy tool has been invented
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Responsible Financial Behavior Punished. Rich Bounce Back as Poor Stagnate.
Monday, 22 June 2015 | 7:15 am
If you were careful, responsible and diligent and didn’t overextend yourself buying that big apartment in the prime central area and the second apartment to rent out, but maintained a reasonable debt to income and debt to equity ratio, you did OK but you certainly didn’t do as well as the guy who bought bigger
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Investing In Mutual Funds. Rationale, Costs and Benefits. . Mutual Fund Distribution and Other Issues. Asian Fund Distribution
Thursday, 18 June 2015 | 7:32 am
Some Issues In Mutual Fund Investing. 1. One of the problems in mutual fund investing is how they are sold to investors. a. High front end commissions. Mutual funds typically charge a commission to invest in them. This commission is paid to the distributor of the mutual fund, such as a bank or
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