Fed Forecasting Low Rate Through 2014
Just a week ago, Fed Chairman Ben Bernanke made a key revision to his standard rhetoric; we can now expect interest rates to remain at record low levels through 2014. U.S. Treasury yields are at historically low levels based on a weak global economic outlook, extraordinary Federal Reserve activity that is temporarily depressing rates, and a flight-to-quality move from domestic and global...
Read MoreGlobal Growth Rates Falling
Global growth estimates have been revised lower heading into year end 2011. Beginning with Europe, the outlook for expansion is no longer positive. Thanks to the sovereign-debt crisis and government austerity plans (that never seem to happen), Europe will likely see negative growth in 2012. Even the powerhouse, Germany, is forecasting near zero growth through next year. Even China is...
Read MoreMobile Commerce: The Next Trend
The thought of not having a debit card for everyday purchases seems archaic. However, as hard as it is to comprehend, research shows that 85% of the world’s transactions are done in cash according to MasterCard Advisors. In other words, more than half of the global population does not use a bank or has little to no access to these services. However, developing markets are quickly changing...
Read MoreGlobal Rates Rising: US Under Pressure
Much of the year has focused on sovereign debt issues and the lack of resolution across Eurozone countries. The crisis has sent long-term bonds in select countries to extreme levels. For example, long bonds in Greece are yielding more than 14%. Though Spain and Italy’s rates are not as high at above 6%, they are substantially higher than rates in Germany and France. The rise in...
Read MoreEyes On The Fed
Stocks have fallen 16 percent since May’s highs which meets the classic definition of a correction. Anything above 20 percent is generally viewed as a Bear Market. With such a precipitous fall in a relatively short period, everyone (including the so-called experts) are asking if now is the time to get back in the market. The answer depends on your outlook for the economy as well as your...
Read MoreEmployment Data Gives a Glimmer of Hope?
Over the last several weeks, we have been inundated with negative economic data. Breaking that trend was the Labor Department’s nonfarm payrolls report which showed an increase of 117,000 jobs for July. In addition, revised numbers for the weak May and June totals helped move the jobless rate to 9.1 percent. While this sounds like a bonus, the unexpected dip was primarily due to a contraction...
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