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Why fixed income investing is on life support

Alex — Wed, 30 Nov 2011 20:05:58 +0000

The current financial paradigm is crumbling beneath us. This is not a temporary disruption, it is a meltdown. All of the mechanisms that drive paper markets are being eroded, and more and more market participants are being, quite literally, robbed …

Fed Wednesday – Policy Outlook

Alex — Wed, 21 Sep 2011 17:20:17 +0000

I don’t want to be right about my of my dire predictions, but all signs point to a significant global slowdown: http://online.wsj.com/article/SB10001424053111904353504576566142076103776.html The Fed is coming out at 2:15 pm to announce the results of their policy meeting. Many expect …

Central bank intervention for profit retention?

Alex — Thu, 15 Sep 2011 18:48:44 +0000

Today we read about Kweku Adoboli, the UBS equities trader that allegedly went rogue and lost the firm $2B in Q3 profits. We also learned about the ECB effectively using extraordinary measures to prop up insolvent EU banks. A rumor …

The coming global debt-driven depression

Alex — Fri, 09 Sep 2011 18:31:17 +0000

Reality begins to set in, which inspires panic. Frantic selling across various speculative assets brings prices drastically lower. Retirements and pensions wiped out. Paper investments made effectively worthless. Sound like a repeat of 2008-2009? The American Nightmare This horrifying scenario …

Is the rally topping out or just starting?

Alex — Tue, 09 Nov 2010 19:19:37 +0000

We've seen a significant gain since the bottom in March of 2009, up about 80% since those 666 lows. Now the market is facing significant resistance, even after the massive $600 billion QE2 plan to inject even more liquidity.

Konnichiwa! Welcome to Japan 2.0

Alex — Mon, 16 Aug 2010 20:45:34 +0000

The 30 year US Treasury bond is below 4%, the 10 year US Treasury bond is below 3% and the 5 year US treasury bond is below 2%. All incredibly low yields that are indicative of a major flight to safe haven assets (along with gold's continued move upwards), no confidence in equities and lower interest rates across the board for savers.

European Union losing strength

Alex — Sun, 09 May 2010 17:29:31 +0000

As the EU moves to establish a bailout slush fund, political opposition in Germany and the UK is growing.

It’s time to default on our debt to China

Alex — Sat, 13 Mar 2010 16:46:04 +0000

Let's face it. China is not our friend. They never have been. Their government regularly engages in military and industrial espionage against our interests. They use bond purchases as a way to keep rates artificially low so they can exploit the consumption-oriented nature of our debt-ridden economy and now they're threatening to use these bonds as a tool to manipulate our government's policies.

Significant headwinds ahead for US economy

Alex — Fri, 26 Feb 2010 14:58:36 +0000

I feel we are facing significant headwinds moving forward because of the loose monetary policy of the Federal Reserve, the refusal to address the core problems in our financial system and the incredibly opaque derivatives market that has yet to be regulated or even cleared on open exchanges.

Credit problems linger in financial markets

Alex — Wed, 09 Sep 2009 14:51:56 +0000

I believe we are well out of bounds of realistic equity valuations and the dollar is being sacrificed by the printing press of the Federal Reserve, Treasury and Congress to temporarily support financial markets.