U.S. Interest Rates Make the Dollar More Attractive

U.S. Interest Rates Make the Dollar More Attractive The strong dollar is the result of higher U.S. interest rates and the fact that the U.S. economy is outperforming the world. But Fed rate cuts are coming. Picture source: Financial Times

The Secular Trend for U.S. Interest Rates

The Secular Trend for U.S. Interest Rates This nice chart shows the U.S. 10-year Treasury yield against the natural rate (nominal R-Star) and monetary velocity. In a sense, it explains the secular trend for U.S. interest rates. Picture source: Fidelity Investments

$11 Trillion Bonds Globally Trade At Negative Interest Rates

$11 Trillion Bonds Globally Trade At Negative Interest Rates The total amount of negative interest rates climbed to USD 11 trillion. Investors are paying governments for the privilege of holding their bonds and are losing so much money in real terms. Picture source: Deutsche Bank Global Research

More than 200 Years of US Interest Rates in One Chart

More than 200 Years of U.S. Interest Rates in One Chart This long term chart covers more than two centuries of US interest rates (yield on the U.S. 10-year Treasury). Picture source: Goldman Sachs Global Investment Research Click the Picture to Enlarge

Why the Fed Can’t Raise Interest Rates Above Inflation Rate, Today?

Why the Fed Can’t Raise Interest Rates Above Inflation Rate, Today? The Federal Reserve can’t raise the Fed funds rate above the inflation rate because the US productivity growth is too weak.Net Domestic Investment to GDP is in a long-term downtrend and reduces productivity.This makes it difficult to see the Fed funds rate exceed the…

Why Do Eurozone Bond Investors Accept Zero Long-Term Interest Rates?

Why Do Eurozone Bond Investors Accept Zero Long-Term Interest Rates? Because they have a deflationary view of the euro area economy. Now, investors are losing so much money just by holding German bonds in real terms (adjusted for inflation). Today, the Germany 10-Year bond yield hits 0% again. Keep in mind that raising interest rates in…

U.S. Rates

U.S. Rates Chart showing the dramatic plunge in interest rates over the past 10 months. On the positive side, the equity risk premium (ERP) is now higher. Picture source: Fidelity Investments

S&P 500 and U.S. GDP Long-Term Growth Rates

S&P 500 and U.S. GDP Long-Term Growth Rates Interesting chart showing the long-term growth rates of the S&P 500 and U.S. nominal GDP since 1920. Picture source: Lohman Econometrics