What the Fed’s New Policy Means For Bond Investors

The Fed Balance Sheet

Last week the Federal Reserve, made a very unusual announcement. It declared that it would could keep interest rates low as long as unemployment was above 6.5% and inflation was below 2.5%. As of the end of November 2012, the unemployment rates … [Read more...]

Why are Bill Gross’s Number 1 Picks not Part of His Total Return Fund?

Bill Gross Investment Ideas

What are Bill Gross’s Best Investment Ideas? Picks Commodities like Oil and Gold U.S. Inflation-Protected Bonds High-Quality Municipal Bonds Non-Dollar Emerging-Market Stocks Pans Long-Dated Developed-Country Bonds in the U.S., … [Read more...]

How the Size and Composition of the Bond Market Has Changed Since 1980

bond market size

Since 1980, the size of the US bond market has increase by 15 times, in terms of the outstanding debt by par value. In terms of the market value of the debt, the number is likely even higher. US Bond Market Size 1980 - $2.54 Trillion 1990 - … [Read more...]

The Chart That Shows Why Inflation May Not be Around The Corner

inflation report

Increasing The Money Supply Does Not Mean the CPI Will Rise (October 2012) There seems to be tremendous confusion between asset price inflation and consumer inflation. “Printing Money” or expanding the Federal Reserve’s balance sheet, has caused … [Read more...]

The Big Picture: World Central Banks Temporarily Soothe The Market But Worry Long-Term Investors

chart with pen

(October 2012) Tom Kenny of About.com recently published the “ 2012 Third Quarter Bond Market Returns: the Third Quarter in Review”.  In the report, he highlights the fact that emerging market bonds had a stellar quarter - up almost  7% , while … [Read more...]