Until now, traditional cash management strategies – investing cash via money market funds, directly buying U.S. Treasury bills or placing monies on deposit with banks – have mostly succeeded in preserving capital. But they may have failed to preserve purchasing power.
In times of volatility, I am reminded of how famous investor Benjamin Graham described “Mr. Market” as a manic depressive who fluctuates between euphoria and despair. As I see it, there are five reasons why Mr. Market should remain calm.
With Congress out for its annual August recess, the next few weeks in Washington may be the calm before the storm: When Congress returns in September, it will have to deal with several high-stakes fiscal deadlines at the same time the Federal Reserve deliberates over when to raise the policy rate.
Recently released U.S. CPI data for July show a familiar trend: strong shelter inflation alongside weak core goods inflation and moderate inflation in core services excluding shelter. While housing costs have been the largest contributor to inflation in 2015, wages bear watching going forward.
In this video, PIMCO global economic advisor Joachim Fels explains how the savings glut, the oil glut and the money glut influence the long-term outlook for the global economy.
Is China’s decision last week to break the renminbi’s (RMB) quasi-peg to the U.S. dollar – and allow the currency to depreciate by 4.5% against the dollar in the space of a single week – good or bad news for the global economy and markets?
While the (debatable) resilience of U.S. oil production has attracted a lot of attention, we’ve noticed a much more interesting story: the lack of growth, or even sequential decline, in U.S. natural gas output.
We remain constructive on the U.S. housing market, which is likely to continue to grow faster than the overall economy, and we see attractive opportunities in this sector.
Almost all market participants were shocked by the headline on Monday night that Chinese authorities weakened the reference rate for the yuan by a record 1.9%. Some initially thought it was a mistake. All scrambled to understand the motivations and the implications.
Recent data including last Friday’s labor market report portray an improving U.S. economy, implying that the Federal Reserve is inching closer to a first rate hike before year-end. While the short end of the bond market seems to agree, longer-dated yields have been living a life of their own. What’s going on?