Doug Casey: Go Short Interest Rates
People who short interest rates – in other words, people who bet they are going much higher in the coming years – are going to make a fortune. I think interest rates will go back to the levels we saw…
WSJ Weighs In On Rising Rates
Mortgage rates at these levels will hobble the [housing] recovery, and it was just the beginning of the recovery. – Kenneth Rosen (subscription required), Chairman, Fisher Center for Real Estate and Urban Economics, University of California, Berkeley. The Wall Street Journal…
Could Rising Rates Kill The Rally?
Is the rally over, killed by higher rates? Not clear, but stocks are signaling that higher rates are going to be a major headwind. – “Stocks Signal Worries Over Higher Interest Rates”, Bob Pisani, Trader Talk, June 10 Note that…
The End of the Treasury Bubble?
At the beginning of the month Barron’s ran a cover story calling a bubble in treasuries: “Get Out Now” (subscription required – e-mail me if you want a link). A month earlier, the fabulous Jim Grant wrote an op-ed in the…
My, My How Quickly Things Change On Wall Street – 10 Year Treasury Closes Below 5%; Ken Fisher Says: Watch Credit Spreads
A month ago the big story was rising interest rates. Everybody was talking about how the economy was holding up while inflation was still a problem and so, far from cutting rates later this year, the Fed’s next move might…
Making Sense of the Two Week Spike In Interest Rates
This morning Barry Ritholtz put up a post on saying that bonds are oversold on sentiment and technicals if not valuation. In that post, he links to an article by Barron’s interest rate columnist Randall Forsyth, “It’s For Real: Bond…
One Important Reason For Rising Interest Rates: Rising Rates Around The World
A couple weeks ago David Gaffen at the WSJ’s MarketBeat blog had a post everyone should read on five reasons for rising interest rates: (1) Higher Yields Around the Globe (2) Diminished Expectations for a Rate Cut (3) China Diversifying…
With Treasuries Repriced For a Fed On Hold, The Bulls Are Back
“For equities, and for the bond market in general, this may come to be viewed as merely an adjustment – a restoration of the old relationship between Treasuries and the federal funds rate – and they may be calmed by…
Interest Rates Explode Upward – Biggest One Day Spike Since March 9, 2005
“Sentiment [on treasuries] has probably gotten too bearish given the current set of news.” – Tony Crescenzi (subscription required), Chief Fixed Income Strategist, Miller Tabak The sell-off the last three days has been entirely about interest rates. Higher interest strain…
The 5% Diet
“The whole story is interest rate worries.” – Stephen Carl, head trader Williams Capital (subscription required) “A lot of people are trying to come to grips with the idea that the Fed is just as likely at a future meeting,…