Stocks are sinking and rates are rising. It hurts, but we’re heading back to normal.

stocks and bonds stumble. housing weakened. And I haven’t heard a word about nonfungible cartoon monkey icons Maybe in three months. Strategists are now turning to really exotic assets – two I spoke with last week recommended buying long-term Treasurys. Someone also said that he prefers stocks of companies that are generating cash, and was … Read more

Falling markets block technology, the dollar, and private equity

font size Japan had to step in to support the sliding yen for the first time since 1998, even as it tries to keep interest rates low. Akio-kun / Bloomberg The world has been hooked on cheap money for years. We are now seeing what withdrawal looks like. Raising interest rates from zero led to … Read more

Quantitative tightening is about to intensify. What does that mean for the markets?

The Federal Reserve now owns about a third of the Treasury and mortgage-backed securities markets as a result of its emergency asset purchase to support the US economy during the Covid-19 pandemic. Two years of so-called quantitative easing doubled the central bank’s balance sheet to $9 trillion, equivalent to 40% of the country’s GDP. By … Read more