Is what matters. But while this is no consolation for anyone who is caught in the hurricanes path, the truth is events like harvey, the kind that cause tremendous property damage, often he will top spur Economic Growth later on because of the need to rebuild when the water recedes and the danger passes, that might be worth thinking about however, the market in its entirety tends not to respond to Natural Disasters of any magnitude. Hence the nature of todays averages with the dow dipping five points, s p inching up and the nasdaq advancing 0. 28 what the market does seem to respond to is news out of north korea. And were now hearing reports that north korea fired a missile thats passed over japan the market is sending many stocks down in after hours trading. Were monitoring the situation for more information focusing again on hurricane harvey, i have no doubt there will be a massive rebuilding effort that will require insurance money and federal. In the end, its not big enough yet to i
Developed world, but frankly i think it is just moving up because of the fed. It is the lack of faith. Something we have been seeing for seven years, the light of faith in the administration, the lack of faith in the qe in other parts of the world that are tapering. The expectation that nothing is going to change and it is the business as usual, i think that is an incorrect interpretation. We will see curves steeply again as the right policy makes begins to unfold. If you look at the feds, they have been around the block a mother have seen inflation pick up when no one expected it to, and they are responding in a way that their Life Experience dictates. That is waved in front of the market everyday is oil rises. Have been going in one direction for a while now, and that is having a big impact, at least on the bond market. Jonathan greg davis, global head of fixed income at the vanguard group, kathy jones, chief fixed income strategist, and from california, i am pleased to say that Mich
U. S. Are still high yield. T is keeping the long end i think the flat thing has more room to run. It is the lack of faith we have been seeing for the last seven years. It is a lack of faith in the administration, the lack of faith in the qe in other parts of the world that are keeping bond yield suppressed. The expectation that nothing is going to change and it is the business as usual, i think that is an incorrect interpretation. I think we will see curves steepening again as the right policy mixf the begins to unfold. If you look at most people in the fed, they have been around the block. They have seen inflation pick up when no one expected it to, and they are responding in a way that their Life Experience dictates. The one sign that is waved in front of the market everyday is oil prices. They have been heading in one direction for a while now, and that is having a big impact, at least on the bond market. Jonathan lets bring in our roundtable in new york greg , davis, global head o
The Interest Rates in the u. S. Are still high yield. That is keeping the long end i think the flat thing has more room to run. It is the lack of faith we have been seeing for the last seven years. It is a lack of faith in the administration, the lack of faith in the qe in other parts of the world that are keeping bond yield suppressed. The expectation that nothing is going to change and it is the business as usual, i think that is an incorrect interpretation. I think we will see curves steepening again as the right hand tale of the policy mix begins to unfold. If you look at most people in the fed, they have been around the block. They have seen inflation pick up when no one expected it to, and they are responding in a way that their Life Experience dictates. The one sign that is waved in front of the market everyday is oil prices. They have been heading in one direction for a while now, and that is having a big impact, at least on the bond market. Jonathan lets bring in our roundtabl
The reach for yield is apparent in every asset class. We know the insatiable chase for yield continues. We should be watching for excesses or buoyancy to get to a tipping point. It should not surprise that this thirst for yield has gotten into the highyield market stree. Am i being compensated for the risk im taking on . You have to be buying credit somewhere whether its highyield or highquality corporate in an effort to get some spread over that which they can earn in treasuries. As a consequence, you have a sort of natural buyer for it even if they have to hold their nose for it while theyre doing it. There comes a point in most investment cycles where you have to start thinking the return on capital is rather less important than the return of capital. Keeping your money and not losing anything becomes more important. A lot of folks who are big names and got it right the giving of the rally are beginning to say, look, this cant go on forever. Scarlet one of those big names gundlach.