Cramer on End of QE Myths

Jim Cramer has a decent piece on the end of Quantitative Easing (QE). He calls on Wall Street pundits to apologize for their incorrect predictions.

Cramer breaks it down quite well into several specific predictions that went wrong. The basic idea under fire — The Federal Reserve was propping up the economy with QE, and the moment QE ended the economy would crash like a house of ...

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QE Over…Interest Rates Down?

Big news is that that Federal Reserve announced the end of Quantitative Easing (QE). Interest rates are supposed to spike up now, right?

They certainly haven’t yet. Of course this is only the first day after the announcement. Short term movements can send markets in any direction, and who knows if rates may actually rise over the next year.

But my point is that there is never a situation where you get “direct” and “predictable” market movements, ...

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Do Higher Interest Rates Mean Better Return?

Many investors are frustrated with low interest rates, but the actual (real) return is not as bad as they think.

We’ve all heard the complaints. Interest rates are at historic lows, which frustrates many investors that want income, especially from low risk investments such as CD’s, money market funds or high grade bonds.

Interest rates on low risk investments have been near zero for several years now. Many investors are remembering the old days when government bonds ...

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Interest Rates Are Not Sure to Rise

It really, truly, is not a sure bet that interest rates will rise in the near future, although most people you ask would beg to differ.

Interest rates are up a bit this year. Does that mean they will keep going up?

I remember in 2002 when interest rates hit record lows. The general narrative at that time was, if we knew one thing, it was that rates ...

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Bond Yields are Low. So do you want the Truth?

There are two basic approaches. There is the honest approach, and there is the predatory approach. You can pick which one you want.

We are all acquainted with the fact that bond yields are low right now, and this can be frustrating. Low yields means less income from the bond portion of your portfolio.

So what do you do? 

I was treated to a presentation recently from William Bernstein. Another advisor in the ...

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The Global Balance Sheet Freezer Unit

Balance sheets are a vehicle for storing value, kind of like a massive economic freezer unit.

Other than commodities and perhaps some other obscure financial instruments, balance sheets are essentially the only way to store value for use in the future. Maybe it is on a bank’s balance sheet as a simple savings account. Maybe it is on a government’s balance sheet as public debt (a bond). Maybe it is on a corporate balance sheet as ...

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Some People Just Can’t Be Happy

No matter what happens, there always seems to be a catastrophe looming – at least in the minds of the financial media.

Now one of the big stories is the “exodus” from bond funds. The bond market has taken a hit this year with bond yields creeping up. The 10 year US treasury yield is now just under 3%.

The financial media is shouting about concerns of higher ...

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