Some central banks are pushing monetary policy into the upside down world of negative interest rates, but rather than success they are creating bizarre side effects.
Since the early 2000’s the name ‘Mrs. Watanabe’ has been used to describe yield seeking Japanese retail investors, who were forced to increase their offshore investment risk taking in response to ultra-low interest rates back home.
Liquidity is one of those things that doesn’t get much focus until it’s too late.
And it’s what’s driving the disconnect between bond and equity performance in 2019.
The Hive is a video series featuring ActiveX fund managers. ActiveX’s Sam Morris and Ardea discuss the latest trends in fixed income and what investors should be considering.
One way to profit from interest rate volatility is to get directional calls right, ahead of a large move in rates. Sadly, we have yet to come across anyone who has been able to consistently get these directional calls right.
In this Nestegg podcast, Gopi Karunakaran speaks with host David Stratford about the current spotlight on the fixed income markets and the importance of a balanced portfolio.
After fears of rising interest rates and bond market volatility rocked global markets last year, the consensus is now swinging back to the low economic growth / low interest rates narrative.
Sometimes opportunities arise because market participants cause pricing in a particular segment of the market to become highly skewed in one direction.
It’s that time of year when inboxes get flooded with 2019 economic and financial market forecasts. As the CFA institute points out, at the beginning of 2018 the median analyst forecast for the S&P 500 calendar year return was +10.3%. The actual result ended up being -6.2%.