In thinking about bond yields, it is important to keep longer - term factors in mind that have nothing to do
with central bank policy.
That said, the fundamental picture continues to argue for higher volatility on the back of a maturing global cycle and the higher uncertainty
about central bank policy that comes with it.
I am optimistic enough to think that, in due course, they will have advanced sufficiently such that stronger growth, accompanied by less extreme
central bank policy settings, could be anticipated.
The perception remains that gold is not needed to mitigate risk because investors
believe central bank policies can manage the economy and overcome financial system problems if they arise.
The process is further complicated by the
fact central bank policy now includes unconventional monetary policies in addition to changes in interest rates.
The process is further complicated by the fact
central bank policy now includes unconventional monetary policies in addition to changes in interest rates.
Years
of central bank policies of easy money have caused short - term interest rates to remain below inflation — aptly called financial repression — which has penalized savers.
Expected inflation is calculated as the average of the current
central bank policy rate and exponentially weighted average inflation over the prior 10 - year period.
Since January, according to Bloomberg data, the euro has weakened roughly 10 percent versus both the dollar and the pound,
as central bank policies diverge.
There is usually some variance
in central bank policy, says Lascelles, but not to the extent that we're seeing today.
Global bond yields continue their downward trend, a phenomenon that can be attributed, we believe, to two things:
easy central bank policy and Brexit - induced risk aversion.
Investment strategies that rely on different segments of the market behaving differently, such as managed futures and global macro, can thrive as global
central bank policies diverge.
But the potential for greater bond market volatility ahead, associated with
central bank policy uncertainties, and paltry expected returns, should make investors wanting to own government bonds for their perceived «safe» value think twice.
With the global economy «floating on an ocean of credit,» the current acceleration of credit
via central bank policies will likely produce a positive rate of real economic growth this year for most developed countries, PIMCO chief Bill Gross writes in his latest monthly commentary, but «the structural distortions brought about by zero bound interest rates will limit that growth and induce serious risks in future years.»
Rick Rieder and Russ Brownback argue that while cramming for finals may have worked in college, it won't with the winding down of the global
central bank policy liquidity «semester.»
We expect that European and Japanese stocks will continue to outperform U.S. ones in 2015, given their more attractive valuations and Europe and Japan's more market -
friendly central bank policies.
2018 Outlook: «A decade of extraordinary
central bank policy support will begin to end in 2018, but a favorable economic environment and improving corporate fundamentals could allow European stocks to play further catch - up with US equities.»
We have come across a few articles recently that discuss some of the strategies investors are using or contemplating to use as a result of the market distortions caused by
current central bank policies.
If elected, they would consolidate his influence
over central bank policy and likely ensure fidelity to his stimulative policy agenda.
Thus, while it is true that global economic or political uncertainty, rising inflation and a weak dollar benefit gold prices, the most compelling argument for gold this year may center
on central bank policy and the level of real interest rates.
Japan's government on Thursday nominated Haruhiko Kuroda, an advocate of aggressive monetary easing, as the next Bank of Japan (BOJ) governor in a move that could see
radical central bank policies push the economy out of a rut.
Aided and abetted by
ultra-loose central bank policies, investors have collectively embraced a liquidity illusion — or, to be more precise, stumbled into a liquidity delusion.
Gold bugs like Sprott have long warned about the impact of inflation,
central bank policy measures and government spending on the value of fiat national currencies.
He mentioned his first mentor, Speros Drelles, investment chief at Pittsburgh National Bank, taught him to focus on the future rather than the present with investments, and also that
central bank policy moved markets even more than earnings.
Several factors support this rosier view, including a shift toward self - sustaining growth, improving private investment and
steady central bank policies — to name a few — but synchronous growth is chief among them.
... The zero - interest - rate and bond -
buying central bank policies prevailing in the U.S., Europe, and Japan have been part of a coordinated effort that has plastered over potential financial instability in the largest countries and in private banks.
Since then we've had everything from successive quantitative easing programs and a subsequent «taper tantrum,» to unprecedentedly loose
international central bank policies (e.g. European Central Bank and Bank of Japan).
Phrases with «central bank policy»