Inc. (January 9)
“Everyone loves talking about the stock market, but the $28 trillion Treasury market is the fortuneteller of the pair—bonds are now flashing warnings of a Fed policy error, resurgent price pressures, and a ballooning debt pile.” Contrary to expectations, “bond yields have surged since the Fed began cutting interest rates.”
Tags: Ballooning debt, Bonds, Fed, Fortuneteller, Interest rates, Policy error, Price pressures, Stock market, Treasury market, Warnings, Yields
Financial Times (August 23)
“Closely watched gauges of long-term inflation expectations in Europe have reached their lowest levels for almost two years, in a sign that investors think central banks can keep lowering interest rates without risking a flare-up in price pressures.” Concerns are also easing in the U.S., with “markets pricing the average long-term inflation rate at 2.4 per cent, down from 2.6 per cent in July.”
Tags: Central banks, Concerns, Easing, Europe, Expectations, Flare up, Inflation, Interest rates, Investors, Price pressures, Risking, U.S.
Australian Financial Review (October 25)
“Inflation will be the key issue for financial markets in coming years, with investors set to reap massive profits or suffer swingeing losses, depending on whether they make the right call on the stickiness of price pressures.” Astute investors are now figuring out strategies, like shortening bond maturities within their portfolio, to help “insulate their investment portfolios from the threat of rising inflation.”
Tags: Bond maturities, Financial markets, Inflation, Investors, Losses, Portfolio, Price pressures, Profits, Shortening, Stickiness, Strategies, Threat
Wall Street Journal (July 19)
“As China’s factory-gate prices soared this year, investors worried the country would become a new source of inflation for the rest of the world. Instead, the world’s second-largest economy has helped alleviate some price pressures caused by the pandemic.” Many Chinese factories have been “absorbing higher costs for raw materials like copper and iron ore themselves.” It appears this will continue “at least for a while.”
Tags: Absorbing, Alleviate, Copper, Factories, https://www.wsj.com/articles/how-china-is-helping-to-damp-global-inflation-11626616802?cx_testId=200&cx_testVariant=cx_10&cx_artPos=5#cxrecs_s China, Inflation, Investors, Pandemic, Price pressures, Prices, Raw materials, Worried
