U.S. Bond Yields The era of ultra-low interest rates that followed the 2008 financial crisis should be seen as a historical anomaly. It is unlikely that U.S. bond yields will return to their post-crisis lows. Image: Gavekal, Macrobond
Liquidity Policies and Central Bank Balance Sheets Central banks have barely decreased the amount of QE stock, suggesting a deliberate and measured strategy in scaling back economic support. Image: BofA Global Investment Strategy
When Do You Expect the Fed to Begin to Signal Tapering of Asset Purchases? Will the Fed announce QE tapering by year end? Image: BofA Global Fund Manager Survey
U.S. 10-Year Treasury Yield and Taper Announcement Historically, QE tapering tends to push U.S. 10-year Treasury yields lower. Image: Charles Schwab
U.S. Zombie Companies and Wilshire 5000 Since the Fed ended QE in 2014, U.S. zombie companies have underperformed the stock market. Image: Arbor Research & Trading LLC
Central Banks – Market Risk Trend and Economic Policy Trend Chart suggesting that risk assets’ sensitivity to political risks has been neutralized by central banks’ QE and dovish monetary policy stance. Image: Image: BofA Global Research
S&P 500 Total Return and U.S. High Yield/High Grade Usually, flight to quality in credit markets is rarely a good sign for equities, but ECB QE, Fed easing and repo operations should be positive. Image: BofA Merrill Lynch
Different Holders of DM Government Debt The chart shows the historical breakdown of different holders of DM government bonds and overall DM debt-to-GDP. Even with QE, central bank government bond holdings are below historical peaks. Image: BlackRock Investment Institute
“Ken Fisher: Thinking in Ways That Others Do Not, with John Tamny” Great interview of Ken Fisher on: coastal redwoods, dikes and climate change, efficient markets, quantitative easing (QE) vs. inflation, humans as a group are slow to learn, recessions, Fed and interest rates, why philanthropy is bad and immoral, and why inequality is a good…