Research & News
Daily Comment (November 15, 2016)
by Bill O’Grady, Kaisa Stucke, and Thomas Wash [Posted: 9:30 AM EST] It looks like we are getting a profit taking day across the financial and commodity markets, with Treasuries, oil and gold rallying, while the greenback takes a breather. Equities are modestly higher. We see a couple of items in play. First, numerous markets have… Read More »
Weekly Geopolitical Report – President Trump: A Preliminary Analysis (November 14, 2016)
by Bill O’Grady On November 8th, Donald Trump shocked the country and the world by defeating Sen. Hillary Clinton in the U.S. presidential race by accumulating a majority in the Electoral College. Mr. Trump, the first president in U.S. history to gain the presidency without having been previously elected to office or served in the military,… Read More »
Daily Comment (November 14, 2016)
by Bill O’Grady, Kaisa Stucke, and Thomas Wash [Posted: 9:30 AM EST] The Trump market effect continues this morning; equities are flat to higher, but the most consistent market action has been in interest rates and the dollar, which continue to march higher. Like everyone else, we are trying to determine the impact of Trump’s policies… Read More »
Asset Allocation Weekly (November 11, 2016)
by Asset Allocation Committee The Trump victory has significant ramifications for the economy and markets. The president-elect’s platform is somewhat ambiguous, which isn’t all that unusual; candidates want to build in some degree of flexibility that a detailed platform can reduce. Despite this lack of clarity, there are elements that are emerging that offer a guide… Read More »
Daily Comment (November 11, 2016)
by Bill O’Grady, Kaisa Stucke, and Thomas Wash [Posted: 9:30 AM EST] It’s Veteran’s Day—thanks to all those who served. The cash Treasury markets are closed but the futures are trading. Equities are open all day. BREAKING: Vice Chair Fischer said this morning that policy rates will rise more slowly and less high than in previous… Read More »
Daily Comment (November 10, 2016)
by Bill O’Grady, Kaisa Stucke, and Thomas Wash [Posted: 9:30 AM EST] The Trump rally continues this morning; so does the bond selloff. Like all analysts, we are still trying to figure out how the Trump administration will govern. To some extent, we are seeing a bit of “hope and change” being projected on the markets… Read More »
Daily Comment (November 9, 2016)
by Bill O’Grady, Kaisa Stucke, and Thomas Wash [Posted: 9:30 AM EST] In an upset perhaps even exceeding Truman/Dewey, Donald Trump, a real estate mogul with no military or government experience, defied polls and betting sites, winning the Electoral College vote last night. Although there are still some states that have not officially declared their results,… Read More »
Daily Comment (November 8, 2016)
by Bill O’Grady, Kaisa Stucke, and Thomas Wash [Posted: 9:30 AM EST] There isn’t much more we can add on the election at this point. It appears the financial markets have discounted a narrow Clinton win, but we would still not be shocked to see Trump prevail. We have been concerned about the reliability of polls… Read More »
Weekly Geopolitical Report – Inflation Targeting: What’s so special about 2%? (November 7, 2016)
by Kaisa Stucke, CFA Speaking at the Boston FRB conference on October 14th, Fed Chairwoman Janet Yellen indicated that Fed officials are considering the benefits of running a “high pressure economy.” This sparked speculation that the central bank would allow its inflation target to temporarily exceed 2% as the labor market and aggregate demand improve. The… Read More »
Daily Comment (November 7, 2016)
by Bill O’Grady, Kaisa Stucke, and Thomas Wash [Posted: 9:30 AM EST] We are seeing significant market moves this morning, with equities and the dollar sharply higher but Treasuries and gold lower. The proximate cause for the swings came from FBI Director Comey, who indicated in a letter to Congress that the newly discovered emails would… Read More »