FATT News and Press, Fat Tail Risk ETF From 07/26/21

When Paul Volcker fought inflation, the way he did it was letting interest rates go higher than the inflation rate. It can take years for inflation to show up, or go away, after a Fed policy change. Having interest rates below the inflation rate is once again encouraging inflation...

Fortunately, the current year has been a bit kinder to prognosticators than the previous one. The bull market that began in 2009 didn’t end when the coronavirus panic pushed the S&P 500 down 34 percent from its previous high. The post-Covid rally, and particularly the fasci...

Vix spikes as volatility rattles the Dow. The advantage of using options strategies when markets turn volatile. How investors can use sector rotations. For further details see: Navigating Market Uncertainty And Higher Volatility

Reverse repurchase agreements remove funds from the overnight lending market, thereby preventing banks from using these funds to support a drawing down of reserves by marginal expansion of credit. Credit expansion may produce inflation. To the extent that accumulation of reserves prev...

Since last November’s vaccine news, financial markets have been "hanging ten" on a swell of cyclical, value and small-cap stocks, and rising Treasury yields. Crosswinds started to grow in the second quarter, however, as economic and inflation data ran hot: rising yields stalled...

Growth-oriented asset classes are likely to shine, but not equally. Above-trend growth is a supportive environment of risky assets like equities or credit. On valuation grounds, equities are looking a little cheaper. Geraldine Sundstrom and Erin Browne discuss PIMCO’s views...

Rate markets seem to have fallen through a rabbit hole into a fantasy world where every new bit of information points to lower growth. That the rally in rates, and associated curve flattening, is occurring at a time the phase of economic acceleration comes to an end can create a misle...

Risk appetite is deteriorating fast, thus providing a rationale for a further drop in interest rates. A further deterioration would call central bank tightening into question and validate flatter curves. What is new is that other markets are giving signs of coming around to this v...

We view China's monetary policy loosening as unlikely to derail a focus on quality growth in the medium term, supporting our views on Chinese assets. U.S. consumer price index (CPI) rose more than expected in June amid the restart dynamics. China’s economy grew slightly slower ...

Strategas Managing Director and Head of Fixed Income Research Tom Tzitzouris breaks down the recent action in the bond market. He hits on the hotter-than-expected inflation data, the Fed’s actions, and his outlook for interest rates. He also discusses another headwind appro...