Innovation and Fintech expert, Richard Turrin discusses Chinaʻs mobile payment revolution, Central Bank Digital Currency (CBDC), and what it means for the West.
On Tuesday, President elect Joe Biden announced that former Fed Chair Janet Yellen is his pick to be Treasury Secretary. Given her successful tenure as Fed Chair from 2014 to 2018, the pick looks like a winner from the start. Let's take a look at why she is a great choice in the current environment.
Associate Professor Mike Ehrlich of NJIT's Martin Tuchman School of Management, talks financial bubbles, government stimulus, and market risks.
There is an investment adage that says, “Don't fight the Fed.” Put simply, when the Fed is providing liquidity to the markets, it should be an overall positive for the stock market, and you should be invested. Historically, this meant investors should watch what the Fed is doing in terms of interest rate policy. Today, with the Fed already hacking the rate back to zero, investors have to look at quantitative easing and it is
The Fed Open Market Committee was set to meet this Tuesday and Wednesday and the market was expecting a 100bps rate cut to the emergency zero level. Instead, the Fed shocked the market with a Sunday rate cut of the expected 100bps and surprise announcement of a $700 billion bond buying program, aka Quantitative Easing 4. This certainly feels like a panic move by Chairman Jerome Powell and the Fed. A Sunday afternoon rate cut
On Tuesday morning, the Fed stepped in and cut the Fed funds rate by 50bps in an emergency move to try and calm markets over coronavirus fears. Markets immediately spiked up but then sold off throughout the day. The market is expecting more rate cuts this month from the Fed and the ECB. For investors, the question is: can the central banks fight off the effects of coronavirus? The answer is yes and no.
Last Friday, Chris Wang talked about the strong jobs reports and growth stocks, Luckin Coffee (ticker LK) and Activision Blizzard (ticker ATVI). Check out the videos to learn more. Hear what the strong jobs report means for the market and importantly what it means for the still very accomodative Fed. Also find out why Chris is excited about the prospects of LK and ATVI.
In the past, the Fed announced their clear intention to use quantitative easing to stimulate the economy. They even named QE2, operation twist. This time, it has been much more stealth in nature. While the Fed has signaled its intention to pause on interest rate cuts, they have reversed course in shrinking their balance sheet and may instead drive it to new highs in 2020. This is clearly a short-term positive for risk assets and
Back in 2016, we wrote “Watch out! Negative interest rate policy is coming to the US sooner than later.” To us, the future feels inevitable with virtually all the other developed nations in negative territory again in 2019. PIMCO's Joachim Fels echoed this thought saying that it's “no longer absurd to think that the nominal yield on U.S. Treasury securities could go negative.”
The stock market has rallied nicely to start 2019 but we think there is a big problem. The major central banks, the Fed, ECB and BoJ, have pumped up asset prices since 2008 with a massive liquidity injection of $11 trillion. They kept interest rates at ridiculously low levels on the short and long end of the curve and investors were forced into risk assets. This grand experiment is known as quantitative easing. Now is