American Taxpayer Relief Act of 2012. That's the title of the recently passed legislation to avoid the so called "fiscal cliff". I don't know whether to laugh or cry. It isn't a true oxymoron since that term is generally reserved for things that are surprisingly true and paradoxical but it certainly fits the more common, modern usage of the term [...]
Here in South Florida we have a saying. If you don't like the weather, just wait ten minutes - it will change. During rainy season when the weather person says there is a 50% chance of rain, that means it will rain on half the city for half the day. Like the weather in South Florida, if you don't like [...]
Is there an interest rate bubble? Has the bond market topped? It is something that has been on our mind for the past year and especially at the long end of the curve during Operation Twist. If and when bond yields normalize, the capital risk to investors is large, about 8.25-8.5% risk per 1% increase in interest rates at the [...]
Stocks continued their relentless advance last week and while I remain skeptical of the rally, I must admit its persistence has been impressive. All good things must come to an end though as the bond market demonstrated in fairly dramatic fashion just last week. Long term bonds (as measured by the IShares 20+ year Treasury ETF, TLT) are down nearly [...]
Alright, now I'm starting to get worried. No, not about the late Friday S&P downgrade of France, Austria and a host of lesser European countries' sovereign debt. That was merely an acknowledgement of something that was obvious to any sentient being long before Friday. How in the world could France retain its AAA rating while the US, with complete control [...]
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