Unwelcome August

By |2018-08-13T16:58:51+00:00August 13th, 2018|Currencies, Economy, Federal Reserve/Monetary Policy|

There is just something about August. It is irresistible, apparently, in all the wrong ways. For starters, there are big ones and small ones but somehow they all line up against liquidity and plentiful eurodollar money. In the former class there was, of course, August 9, 2007, August 9, 2011, and August 10, 2015. Even [...]

Deflationary Decade(s)

By |2018-08-06T16:44:09+00:00August 6th, 2018|Commodities, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

I’ve seen a lot of commentary lately describe conditions as if things are calmed down. There was a bit of growth scare, a little T-bill indigestion earlier in the year. The Chinese are somehow both stimulating their export sector by devaluing CNY, and also controlling the price of gold while they do it. The contradictory [...]

Global Asset Allocation Update

By |2018-08-02T09:20:03+00:00August 1st, 2018|Alhambra Research, Bonds, Commodities, Currencies, Global Asset Allocation Update, Investing, Markets, Real Estate, Stocks|

The risk budget is unchanged again this month. For the moderate risk investor, the allocation between bonds and risk assets is evenly split. The only change to the portfolio is the one I wrote about last week, an exchange of TIP for SHY. Interest rates are on the rise again, the 10-year Treasury yield punching [...]

Beware The Collateral Underneath The Top of GDP

By |2018-07-24T18:31:40+00:00July 24th, 2018|Bonds, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

Why so much wholesale emphasis on collateral? Easy. The monetary history of recent times hasn’t been very kind in that regard. On the one hand, the repo market has become so much more important than it was, as scared interbank participants fled unsecured eurodollar markets eleven years ago next month for the presumed shelter of [...]

The Difficult Wargame of Sorting Financial Intelligence Signals

By |2018-07-20T17:45:01+00:00July 20th, 2018|Commodities, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

After the Soviet invasion of Afghanistan in 1979, the Russians became hyperaware of US and NATO countermovements. There was an increase in bellicose rhetoric on both sides, and the Andropov years had left the Soviet leadership weakened by economic stagnation increasingly worried that the US just might launch a first-strike attack. The Communists developed a [...]

Gold, Dollar, and Repo: Who Cares About Taper, or QE?

By |2018-07-17T18:49:40+00:00July 17th, 2018|Bonds, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

It’s funny how these things work. He didn’t actually say the word “taper”, at least not when the frenzy first started. The very idea of the “taper tantrum” was the media’s work, the easy slogan that could be used as shorthand for the conventional explanation. The economy was improving, everyone was told and easily believed, [...]

Bi-Weekly Economic Review: Welcome To The Slowdown

By |2018-07-07T23:53:47+00:00July 6th, 2018|Alhambra Research, Bonds, Commodities, Currencies, Economy, Investing, Markets, Monthly Macro Monitor, Politics, Stocks|

Welcome to the slowdown. It isn't much - yet - and it may just be a passing phase, but there is little doubt that the US economy has slowed somewhat. The rise in short term interest rates has stalled and the long end of the curve has rallied. The result is a flatter yield curve [...]

Recent Posts

Contact Info

Phone: 305-233-2772

Fax: 305-397-1686