The first Fed rate hike in seven years was supposed to trigger a powerful equity rally as the bulls expected money to pour out of bonds into stocks; especially into the cyclicals.
The logic behind this market call was simple and seductive. History shows that the economy and earnings keep on accelerating as the Fed initially shifts away from monetary policy accommodation and history was expected to repeat itself.
In the aftermath of the stunning liquidation and gating of first Third Avenue's junk bond mutual fund, and shortly thereafter several other fixed income hedge funds, investors have been following with great interest capital (out)flows from the fixed income space.
Exclusive: President Obama, like generations of Western leaders, has coddled the oil-rich Saudi monarchy by tolerating its reactionary politics, its financing of radical Islam and its military support for Sunni jihadist terrorism. But the spoiled Saudi leaders may finally be going too far, as Daniel Lazare describes. By Daniel Lazare Is the Saudi monarchy coming apart at…
Submitted by Leonard Brecken via OilPrice.com,
It’s very clear that both the industrial and manufacturing sectors are in recession while consumer spending slows but remains positive despite lower commodity prices. This divergence can be blamed at least in part on the Federal Reserve’s policy of pursuing a stronger dollar.
Elon Musk's Space-X has just changed the game for space travel and exploration. It's enabled reusability of rockets.