Central Bank “Distortion” Is a Red Herring

The rise of passive investing is upon us.  Years of substandard performance from active fund managers promising to be experts able to beat the market consistently has led to a meaningful shift toward lower-cost investing. Continue reading Central Bank “Distortion” Is a Red Herring

Prediction for March 9-10 ECB meeting: Draghi will again underwhelm

The world will be watching closely as the results of this week’s European Central Bank (ECB) monetary policy meeting are released on Thursday.  Draghi is keen to avoid under-delivering as he did in December.   Continue reading Prediction for March 9-10 ECB meeting: Draghi will again underwhelm

Everyone, Act Natural!…and the Economy Will Too?

PIMCO (Pacific Investment Management Company) has a history of being a thought-leader in the financial industry, but their recently released insight–here–on the effects of central banks instituting negative interest rate policy (NIRP) is laughable. Continue reading Everyone, Act Natural!…and the Economy Will Too?

But what about Saudi Arabia’s budget deficit?

“Saudi Arabia Offers to Send Ground Troops to Fight ISIS”–This is further evidence that Saudi Arabia is not the least bit worried about the sustainability of its currency peg to the dollar of 3.75 riyal per dollar.  Despite a 2015 budget deficit of a whopping 15% of GDP due to a decline in oil prices no longer seen as transitory, the kingdom is preparing for further military expenses. Continue reading But what about Saudi Arabia’s budget deficit?

Despite rate liftoff, Fed still thinking internationally

Prior to the summer market turmoil surrounding China’s stock market intervention and currency devaluation, most economists had expected the Federal Reserve’s first rate increase since 2006 to come Continue reading Despite rate liftoff, Fed still thinking internationally