Three weeks ago we mentioned how Fed assets were finally declining on a quarterly basis. Since then we have had a few more data points released and the trend is still downward....
Since euro QE began in earnest at the beginning of March it seems we’ve heard nothing but the positive merits of investing in Europe now that the central bank has finally stepped up to the plate and delivered long overdue unconventional monetary stimulus....
Since the ECB announced its open ended QE program we have seen numerous parallels being drawn with Japan’s amped-up QE program announced in April of 2013, but telegraphed in late 2012. One of those parallels is that like Japanese financial stocks, Europe’s financial stocks should...
Yesterday we highlighted that our Weak Stock Market Close Indicator indicator had surged to the highest level since 2012 and today a client made the good point that our Weak Stock Market Close indicator seemed to give more false signals when the Fed was engaging in...
Despite today’s modest uptick in treasury bond yields, the downward trajectory in yields coinciding with the Fed’s tapering of asset purchases remains firmly intact. Admittedly we’ve been harping on this point now for months, so we’ll keep this post short and sweet....
Last weekend we wrote that The Flow of QE Suggests Lower Bond Yields and Stock Prices and it appears that is just what we are getting. Putting the stock part aside for now, we simply would like to point out that long-dated US government bonds are...
The Fed is set to conclude its nearly six-year-old experiment with quantitative easing (QE) and the Federal Reserve Board has clearly laid out the most likely course for termination of the program....
Last week we analyzed here one reason why the yen has not fallen more, despite all the QE and investor expectations for a much weaker yen....
After undergoing a fairly rapid depreciation from the end of 2012 to mid-2013 the yen has traded in a more or less sideways channel and has recently been parked between 101-104 per USD....
A good proxy for the expansion and/or contraction of the shadow banking market is the change in the amount of commercial paper outstanding. Successive rounds of QE–represented by the expansion of the Federal Reserve’s balance sheet–have had a stimulative, but short lasting impact on the...
Over the last year, between the FRB and commercial banks, around $500 billion in net new real estate credit has been extended. That is the good news. The concerning part is that the FRB has accounted for over 100% of all real estate credit created....
