These are more than interesting weeks and months. We appear to be moving to the other side of the pandemic. But certainly the stock markets are not in the best of moods these days. I had suggested in early 2021 that the market makers might not like what they see when get a peak at […]
We’re not fighting inflation on the Sunday reads.
This past week was all about central bankers and their attempts take on inflation. Tiff Macklem and Jerome Powell were both in the spotlight as they made announcements and rate move decisions. With inflation at 30 year highs on both sides of the border, Macklem and Powell decided to do what they do best – […]
Stocks and bonds to fight inflation on the Sunday Reads
We don’t often think of bonds to help us fight inflation. Core bond funds can get slaughtered, hit by the potential of rising rates (bond prices go down) and decreased spending power in real dollar terms thanks to an increase in the cost of living. So we’ll look to inflation-adjusted bonds. The thing is, the […]
How to protect against inflation.
It is probably the greatest (and potentially dangerous) misconception in the investing landscape, that stocks protect you from inflation. That’s simply not true. While stocks have a long term history of besting inflation, they can fail in many periods, short and extended. Stock markets do not always work as an inflation hedge. And Vanguard suggests […]
Bonds are back. But what did they just say?
Bonds are the adult in the room. And when they speak, we should probably hear them out. This week bonds went on a tear. What were bonds trying to say? They were listening to the ‘Fed Speak’ in the U.S. that left many confused. Of course, the Federal Reserve and the Federal Reserve Chairman set […]
The stock and bond markets are buying the transitory inflation argument. On Sunday Reads.
This week offered another look at inflation numbers in the U.S. Inflation is robust and we see those inflation hotspots or pockets. Transportation costs for goods are soaring. Commodities prices (and especially oil) are on the march higher. Yet the markets have shrugged off the big inflation numbers. The stock and bond markets are buying […]