FATT News and Press, Fat Tail Risk ETF From 08/18/21

Taking investment cues from market price trends is pure Momentum Investing. Fundamentals do indeed determine the price trends over longer periods, but not within the time frame presented by media pundits. Fear of loss (risk) is the main driver in the human psyche, and this has long be...

U.S. treasuries are, by far, the largest and most liquid market in the world. For decades, sophisticated market participants have looked to treasuries as the best and fastest interpreter of rapidly breaking macroeconomic data. In moments of high economic distress, money has histor...

Any disappointment in key US data today is likely to see a larger reaction than a consensus beat. Markets are primed for hints of further deceleration, sentiment already dampened by the spreading delta variant and geopolitics. More concrete hints on the Fed taper will be needed fo...

The unprecedented demand for U.S. Treasuries at last week’s auction - even as the 10-year yield approached its 50-day moving average - speaks volumes. Yields did slip notably last Friday back below 1.3% (the day after the auction), closing below their 200-day moving average. Th...

Senator Joe Manchin (D-WV) is “deeply concerned” about the Fed’s easy money policy and urged the Fed to curtail its aggressive intervention in the bond market. This raises questions about whether or not the Fed might taper sooner than expected. I believe the Fed w...

We believe ignoring the effects of climate change on portfolios is not an option, and the window for investors to position portfolios may be shrinking. The U.S. Senate passed a $1.2 trillion infrastructure bill that now awaits a House vote. Congress will take up the $3.5 trillion spen...

A potential reduction in the Fed’s purchases of agency mortgage-backed securities could open up opportunities for investors. The agency mortgage market is currently trading roughly 15 basis points rich relative to its three-year average. Agency pass-throughs are a foundatio...

This week, the market did register new highs, but only by a small fraction. What is important to note is that these incremental gains are burning through buying power, which leaves the markets increasingly vulnerable to a correction, given the proper catalyst. However, for now, with v...

Inflation is a bit stickier than expected. And as it is not leading to higher long-term interest rates, it’s not yet having the traditional effect on earnings multiples and bond prices. Despite equity markets near all-time highs, investor anxiety is up. Strategas Chief Inve...

The BLS reports producer prices that are still rising at substantial rates. The PPI representing the final demand for finished goods was up 9.35% YoY in July, slightly faster than the 9.19% posted in June. The latest a new thirteen-year high just about equal to August 2008. It isn...