Why you might want to lock in higher yields now, given real interest rates are the highest they have been in 15 years. Topics covered include: Show Notes Jackson Hole Economic Policy Symposium: Structural Shifts in the Global Economy—Federal Reserve Bank of Kansas City Policymaking in an age of shifts and breaks by Christine Lagarde—European Central Bank Inflation: Progress and the Path Ahead by Jerome H. Powell—The Federal Reserve Bank Structural Shifts in the Global … [Read more...]
403 Plus: Is This Normal? Rate Increases, Negative Returns, and Owning Short-term versus Long-term Bonds
In Plus Episode 403, we consider whether the current market volatility is normal compared to earlier periods of rising interest rates. We review the latest leading economic indicators to see if recession risk is rising. Finally, we discuss what factors to consider if deciding about selling longer-term bonds and investing in short-term bonds. Become a Member If you would like to listen to this episode of Money For the Rest of Us Plus, you can do so by becoming a Money For the Rest … [Read more...]
246: What Central Banks Don’t Know Should Concern You
Why an inverted yield curve is disconcerting given such low interest rates. Why those low rates could lead to radical central bank policies during the next recession. In this episode you’ll learn: What is an inverted yield curve and does it signal a recession is coming.What determines interest rates.What is the neutral equilibrium real rate of interest and why it matters.Why is the Federal Reserve considering make up strategies that allow inflation to rise up its 2% target and what … [Read more...]
MNY148 Plus: Model Portfolio Changes, Moving Averages and Central Banks
This week March 11, 2017 on Money For the Rest of Us Plus we review the rationale for the model portfolio changes that reflect more defensiveness regarding fixed income. We look at how an investor who is an entirely in cash should decide what to do in the current market environment. We also review what it means to say central banks are accommodative and how the stock market has performed when rates are rising and when momentum is bearish. Finally, we look at how to interpret trend data … [Read more...]
