Let’s Speculate For Fun (Not)A regional bank run wasn’t my #1 candidate for the ripple effects of higher interest rates.My #1 candidate is over-leveraged pension fund managers aboard, who hedged their foreign exchange exposure. Last year, long-dated GBP bonds dropped...
Why Do Foreign Markets Matter?My early morning comments on this article are here, click on the image to listen to my dulcet tones, describing this article.Now, there is no coordination among global central banks and governments.If you are a HUGE investor, running...
Back To The Auction (The Price Of My Coffee Cup)Look at the thinnest line; if you think this is a coincidence, you could not be more wrong. This is how the algorithms work, this is what those that determine the short-term prices are scrutinizing, around the clock. So...
The Federal Reserve Begins To Reverse CourseThe Fed listened, and now we wait. Armchair economists, armchair portfolio managers, armchair policy wonks, etc: we all wait for a complicated set of results.Reuters story here: click here.Good luck to them, you have already...
Even Bigger Than Bonds? Foreign Exchange (not financial advice, dyor)It doesn’t matter, until it does. And you can be affected by this, whether you realize it or not. Foreign exchange is the largest market in the world: bonds don’t even compare. Here’s the 12-month...
Very Instructive (not fin’l advice dyor)So…now that everyone has fully read and understood the messages for pretty much the past 3 months here, which has been “Stocks for show, bonds for dough.” If you have missed this theme in this Substack, please scroll down to...
MaybeThis pattern has not been seen for at least 6 months. Possible, uncertain reasons, might include:a. Foreign Bond Markets. BINGO. All of European government bond markets are much lower in yield, after reaching the 12-month high.b. Foreign Exchange. Nope, stable.c....