The S&P 500 is above 1500. CBOE S&P 500 Volatility (VIX) is sitting near 15-year lows. And 88% of iShares S&P 100 (OEF) component stocks are above respective 200-day moving averages.
Normally, you might hear more discussion about complacency and/or an imminent sell-off. Instead, you’re hearing more about the “Great Rotation” out of bonds and into [...] [...more]
In the steamy September days (9/13-9-14) of central bank euphoria, Federal Reserve Chairman Ben Bernanke announced that the Fed would immediately begin purchasing $40 billion in mortgage-backed securities each month. What’s more, the chairman did not include an end date for the quantitative easing program known as “QE3.”
Bernanke’s summertime bazooka sent S&P 500 stocks skyward, [...] [...more]
Governments around the globe are struggling to¬†get their spending¬†in check.¬†Annual deficits in the developed world are, in many cases, devastatingly obscene.
And yet, if¬†an industrialized country (e.g.,¬†Germany, Japan,¬†United States, Great Britain, etc.) has¬†enough cache with global borrowers, that nation¬†may presently¬†borrow-n-spend with impunity. Treasuries, gilts, JGBs,¬†German “bunds” — the rich sovereigns have been racking up enormous “credit [...] [...more]