BONDS – Maverick Investors

Despite market washout, the Fed is unlikely to cut rates anytime soon in response to coronavirus

The Federal Reserve and the markets are miles apart when it comes to expectations for interest rates, and that’s unlikely to change anytime soon

Bonds (ETF’s, Mutual Funds) at Risk even in a Recession

It’s very difficult to teach young adults about how bonds work – although I believe I’ve done a pretty good job of it. It’s even more difficult to educate adults…

Expectations for a rate cut will fade as coronavirus fear eases, Fed’s James Bullard says

Central bank officials have indicated that they are content to keep policy on hold as they watch economic developments play out.

by Mal SpoonerFebruary 20, 2020February 20, 2020

What is the bond market telling us?

Bond traders have taken yields at very short end of the curve and mid-range (2 to 10 year maturities) a bit higher as confidence in the economy has temporarily strengthened. …

OECD warns over pileup of low-quality corporate debt

The volume of corporate debt hit an all-time high of $13.5 trillion at the end of 2019, but the overall quality of bonds fell below levels seen before the global financial crisis, according to a new OECD report.

Economic Report: U.S. runs $32.6 billion January budget deficit, Treasury says

The federal government ran a budget deficit of $32.6 billion in January, the Treasury Department said Wednesday.

by Mal SpoonerFebruary 10, 2020

When Consumer is Happy, Markets are High Risk

Consumer sentiment is usually considered an economic leading indicator. When confidence is at rock bottom levels, it’s a sign that the economy and stocks markets are heading lower. This isn’t…

by Mal SpoonerFebruary 5, 2020February 6, 2020

The rally in stocks will end! Buy bonds.

I stumbled across this quote from USA Today dated Nov. 5th, 2019: Mike Piershale, president of Piershale Financial Group in Barrington, Illinois, manages portfolios for retirees and pre-retirees. Most of…

by Mal SpoonerFebruary 4, 2020February 4, 2020

Hold on to your bond ETF’s: It’s a RECESSION!

There are a enough indicators to suggest we’re already ‘in’ a recession. But, you say, GDP stats that have been published remain positive. As I learned decades ago, historical data…

by Mal SpoonerJune 3, 2013February 6, 2020

BONDS – Where we go from here!

But there may be reason to expect any correction to be mitigated by a FED that wants to simply layoff the accelerator rather than apply the brakes. There have been periods when interest rates have climbed modestly yet stock markets continued to be relatively generous.