FLGV News and Press, Franklin Liberty U.S. Treasury Bond From 10/27/20

We recently reduced our exposure to bonds, the first time in years, due to the more extreme overbought condition of Treasury bonds following the pandemic's onset. In just the last 15 days, the estimates for 2021 have declined by almost $7 per share despite repeated statements of a rec...

In response to the global COVID-19 recession, central banks across the world unleashed synchronized monetary stimulus to backstop the economy. With the lack of inflation pressure, and higher tolerance for inflation overshoots, central banks globally are likely to keep interest rates l...

Examine the possibility that a "blue wave" is not necessarily "growth-friendly" and how fixed-income investors should plan for such an outcome. A "blue wave" results in a potentially higher tax, an increased regulatory environment and a less "business-friendly" setting, which could ul...

European bond prices have an unmistakable correlation to European COVID infections. The strategy of ensuring the banking system remains well capitalized - while letting market-based finance run wild - may have plausible theoretical underpinnings. The "penalty rate" issue is key to...

There are continuing political and pandemic stories that could dominate the news cycle at any time. Many of the normal economic indicators are not helpful in the wake of the COVID lockdown decline. Retail sales improved 1.9% in September, beating expectations of a 0.6% gain and Au...

The question of the week in bond-land is, "what will the impact of the 'blue wave' be?" In one scenario, a potential higher tax, increased regulatory environment and less "business-friendly" setting could result in slower economic growth. However, in scenario #2, the removal of gr...

The AIER Everyday Price Index rose 0.2 percent for the month of September, faster than the 0.1 percent rise in the Consumer Price Index (on a not seasonally adjusted basis). The largest positive contributors to the rise in the index in September were intracity transportation, food awa...

The dip-buyers are now just 2.9% away from making a new market high. The earnings recession continues, but forward estimates look rosy. Big Tech has lost some of its mojo. For further details see: The 1-Minute Market Report - October 9, 2020

The inherent problem of tying your Presidency to the stock market is that it's all fine until it isn't. The market rallied on what is for now "hope" of more stimulus. There is still no deal on Capitol Hill, and the parties are still far apart primarily on funding for states and munici...

At least for now, for the markets it's weirder the better. With Biden's lead appearing increasingly insurmountable (with less than four weeks to go), we can assume there was this week significant buying associated with the partial reversal of market hedges. Chairman Powell made hi...