@theMarket: China Stimulus Boosts World MarketsBy Bill Schmick,
11:32AM / Saturday, September 28, 2024 | |
A week after the U.S. central bank's policy shift, Chinese authorities unleashed their monetary policy dragon. The move caught world financial markets by surprise and launched the Shanghai Composite index up more than 9 percent in three days.
The People's Bank of China (PBOC) launched its largest stimulus package since the pandemic. The PBOC cut interest rates, reduced the reserve requirement ratio, and introduced structural monetary policies to stabilize Chinese markets, which went straight down for months.
Wall Street analysts are overwhelmingly negative on the Chinese market. Investments in Chinese stocks by Institutional investors 0 Comments
Read More >> |
The Retired Investor: My Economic Outlook into 2025By Bill Schmick,
02:29PM / Friday, September 27, 2024 | |
On the back of last week's half-point cut in interest rates by the Federal Reserve Bank, equities and many commodities rallied anticipating continued growth in the U.S. economy. Why, therefore, did bond prices plunge?
Normally, after the Federal Reserve Bank begins an interest rate-cutting cycle, bond prices rally, and yields fall. But not this time. Economists were scratching their heads all week looking for answers. The explanation is straightforward.
For weeks before the meeting, many traders were betting that the Fed would be too slow to cut interest rates. And when and if they did it would be a small cut. That delay increased the probability that 0 Comments
Read More >> |
@theMarket: Fed's Half-Point Rate Cut Surprised MarketsBy Bill Schmick,
03:08PM / Friday, September 20, 2024 | |
The Federal Reserve Bank's half-point interest rate cut surprised investors and traders alike this week. The central bank also indicated that the markets could expect more of the same in the months ahead.
The main three averages soared on the news on Thursday and into Friday. New highs went a long way in dispelling my fears that the last two weeks of September would be rocky. The giant-sized rate cut may have at least delayed the downside that usually accompanies this seasonal period in the stock market.
It was the first FOMC meeting in a long time where Fed watchers were unsure how much the central bank would lower rates. Historically, a 25-basis point 0 Comments
Read More >> |
The Retired Investor: Deals Coming Back in Some Consumer AreasBy Bill Schmick,
04:45PM / Thursday, September 19, 2024 | |
Consumers have been bludgeoned for years by higher prices. In this era of inflation, discounts disappeared as prices of everyday items climbed higher and higher each year. It has been a long time, but value is finally returning in various consumer areas.
This summer could be called the season of markdowns as corporations across America have become concerned that price-sensitive consumers have been trading down to cheaper goods and services. Many companies have seen sales decline as discount stores and labels have taken market share.
While the Federal Reserve Bank and the Biden administration applaud the progress made on inflation, the truth for the consumer 0 Comments
Read More >> |
@theMarket: Fed Expected to Begin Interest Rate Cuts Next WeekBy Bill Schmick,
03:50PM / Friday, September 13, 2024 | |
After two years of monetary tightening, the Federal Reserve Bank is poised to begin loosening its policy. Is the event already priced in or will the stock market celebrate with new highs?
It may depend on how deep a cut the Fed is willing to make. In my opinion, in the long run it won't matter unless you are one of those day-to-day options traders who live or die based on the next trade. Nonetheless, in a market that may well hit a new high next week, what the Fed does and how it talks about future cuts will be important.
Some believe the Fed should cut one-half of a percent (50 basis points), while others are in the camp that it will only need a 0 Comments
Read More >> |
|
|
MEMBER SIGN IN
