Mid Term
Fed report notes that continuing low interest rates could threaten U.S. (and global) financial security.
Well, duh. Yesterday Fed chairman Jerome Powell told the House Budget Committee that"we're in a world of much lower interest rates." He seemed to shrug his shoulders at the prospect as if to say, Hey that's what it is and the Fed doesn't have much power to change that...
Today I’ve posted the finally completed and corrected Special Report: 3 ways to higher income in a low yield desert
Sorry this took so long but the complete Special Report with all three strategy recommendations is finally up. You can find it in the Special Reports section of the JubakAssetManagement.com site. To subscribe to JAM you need to fill in some details below including,...
Europe’s problem looks to be German complacency on growth
German Finance Minister Olaf Scholz brushed off warnings from the International Monetary Fund that the European Union and especially Germany need to come up with emergency plans to see it through a growth slowdown. “Given elevated downside risks, contingency plans...
Treasury yields climb again–how far will they go?
The yield on the 10-year U.S. Treasury climbed another 10 basis points today to 1.85%. The yield is now up 32 basis points in the last month, although it is still down 135 basis points in a year. That leaves the yield on the 10-year Treasury 40 basis points above its...
Enthusiasm for this quarter’s earnings; worry about guidance for 2020
Today the Standard & Poor's 500 matched a 12-week high and made yet another assault on a new all-time record. Better than expected earnings have been the market driver. Some 81% of the S&P 500 companies that have reported for the quarter so far have beat...
China’s economy continues to weaken
The manufacturing sector--thanks to the U.S.-China trade war--continues to slow China’s economy. But the real problem may be an underperformance in the services sector that makes it impossible for that sector to pick up the slack. The end result is that the third...Another forecast for lower growth in global economy
Today, September 19, the OECD (Organization for Economic Cooperation and Development) cut the growth projections it had made for the global economy just four months ago. The world economy is forecast to grow at just a 2.9% rate in 2019 and 3.0% in 2020 after growing...
Federal Reserve cuts interest rates by 25 basis points; Trump, financial markets disappointed by guidance on future cuts
Today the Federal Reserve lowered its main interest rate another 25 basis points to a range of 1.75% to 2%. To say that the Fed's Open Market Committee was divided on the decision would be an extreme understatement: Five officials wanted to keep rates unchanged, while...
The credit crunch cometh: Cantor Global calls out credit market froth in junk bonds
Companies sold $13 billion in junk bonds this week, according to Bloomberg. Risk premiums for junk bonds over Treasuries have dropped by 1.5 percentage points in 2019. And at the same time when investors are getting paid less to take on risk, the amount of risk among...With luck and slight of hand, Draghi restarts quantitative easing at European Central Bank
If it had come to a formal vote, there's a good chance that European Central Bank President Mario Draghi would have faced defeat in his efforts to revive quantitative easing at the central bank. But the bank doesn't usually hold a formal vote on a issue like this and...
Moody’s moves Ford debt to junk
Back on August 30 I wrote that several credit rating companies had put the debt of Kraft Heinz (KHC) on their radar screens for a possible downgrade to junk status from investment grade. That would be, I noted, a big deal both for Kraft Heinz and the bond market as a...Jim’s Stock Alerts
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