The 2-year Treasury yield reached its highest level since the global financial crisis as investors anticipate the Federal Reserve will further tighten monetary policy following hot jobs data. In June, private U.S. businesses created 497,000 jobs, the biggest increase since February 2022 and higher than the consensus estimate of 228,000, according to the ADP Research…
2-Year Treasury Yield Hits 16-Year-High on Hot Jobs Data
The 2-year Treasury yield reached its highest level since the global financial crisis as investors anticipate that the Federal Reserve will further tighten monetary policy following the release of hot jobs data on July 6. In June, private U.S. businesses created 497,000 jobs, the biggest increase since February 2022 and more than the consensus estimate…
US Treasury Poised to Unleash $1 Trillion in Bonds After Debt Ceiling Deal
Now that the bipartisan debt ceiling agreement has been signed, sealed, and delivered, the U.S. Treasury is poised to replenish its bank account at the Federal Reserve. According to the Daily Treasury Statement, the Treasury’s cash balance–the Treasury General Account (TGA)–sank below $23 billion on June 1. This was down from the roughly $316 billion…
National Security and the Debt Ceiling
Commentary As the debt ceiling debate looms, U.S. national security may be at risk while welfare is safe. The U.S. Constitution states that the purpose of the government is “to establish Justice, insure domestic Tranquility, provide for the common defense, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity.”…
Freedom of Money—How Will You Spend Your Freedom
How would you love to celebrate your financial freedom when you have finally achieved it? Well, we all dream of cherishing this privilege, but few achieve it. So, your efforts to maintain financial discipline and cultivate healthy saving habits have paid off. What’s next? Of course, you would love to consolidate your wealth as you…
What You Need to Know About Indexes
By Kim Clark From Kiplinger’s Personal Finance Today, there are an estimated 3 million indexes that provide benchmarks against which to measure investment performance and serve as recipes for the portfolios of a vast number of indexed mutual and exchange-traded funds. Here’s a quick summary of some of the most common indexes. Most weight their…
Bank Rates Are Up. How to Avoid Leaving Money on the Table
NEW YORK—Moving your savings around by opening a new account and closing an old one can seem like a hassle. But it’s a use of time that can pay off. After years of paying low rates for savers, banks are finally offering better interest on deposits. Though the increases may seem small, compounding interest adds…
Investing in a Recession? Keep These 6 Factors in Mind
Recessions are a hot topic—and never far from any investor’s mind. It’s a sad fact of life that these periods are inescapable—sooner or later, the economy starts shrinking, asset prices drop, and the stock market takes a nosedive. In such circumstances, it is natural to enter damage control mode. However, entering damage control the wrong…
Systemic Risk in European Banks
Commentary Negative interest rates and quantitative easing have wrecked the economic system. Negative interest rates destroy the profitable portion of a bank’s asset base, and no amount of cost-cutting or efficiency initiatives can compensate for this loss. Furthermore, persistent quantitative easing has transformed the investment side of the balance sheet into a ticking bomb. Deutsche…
If You Don’t Sell, Did You Lose Money or Not?
Commentary Last year, the stock market was down big. The exchange-traded fund that mimics the tech stocks on Nasdaq (QQQ) was down 19.8 percent. The bond market also took a dive since the Federal Reserve moved aggressively to raise interest rates. For what it is worth, statistically there is only a 9 percent chance of…
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