FLGV News and Press, Franklin Liberty U.S. Treasury Bond From 06/01/21

On one hand, prices that are falling too quickly have the potential to hurt purchasing power by raising the real value and servicing cost of liabilities. On the other, prices that are rising too quickly can hurt purchasing power by reducing the real value of income. Growing demand or ...

When I stand back and consider what the Fed is actually doing, it leads me to the observation that they are actually monetizing America’s debt. In fact, in my view, they have been doing so ever since the financial crisis of 2008/2009. The Fed can, and does, buy maturities all a...

The Fed has not changed its messaging since the pandemic hit. But the GDP is at 10%, and inflation's latest data annualized is also at 10%. Uh, you think it's time for a change? The repo market may force the Fed's hand. The Fed has lost control with the huge demand to borrow from ...

Those who went along with the Fed’s inflation-is-temporary-and-going-per-plan narrative are stunned by the data they now see coming in. The inflation data surprises index reveals whether inflationary data is higher or lower than economists expected. It’s hard to claim th...

Bonds and stocks rarely stay positively correlated for long. Something had to give. Unfortunately, it was market sentiment. We’re now increasingly in a "risk off" environment where markets reflect what they see as a deteriorating outlook. The ECB pre-meeting expectations ma...

Bonds are back in favour, and there is a range of potential reasons why that is so. As always, there is never only one explanation, but the usual central bank suspects bear some responsibility. The Fed's rising tide of cash has to be invested somewhere, while dovish ECB comments a...

Volatility sellers have been proven right in May, and carry has become more attractive. Consumer confidence data will help gauge inflation pressure and labour market tightness, but we doubt this will prove decisive, thus putting carry traders in the driving seat near term. The pro...

The market focus is on the restart and inflation - and less on geopolitical risks - yet, it’s worth watching specific risks, as flareups could catch investors off guard. Inflation expectations eased on lower oil and commodity prices. We expect volatile near-term data amid pent-...

The Fed can't taper Quantitative Easing (QE) without really hurting the market. Tapering of QE will signal a shift by the Fed to tighter monetary policy. Tapering will signal the end an era of Fed ease and the onset of higher inflation and interest rates, the market’s event...

Bitcoin has had two bear markets since mid-April. There was a 27% decline followed by a 27% rally, followed by last week’s rout. From its intraday peak in April to its intraday low last week, bitcoin fell over 53%. Is that the end of the sell-off? Doubts about the post-virus bo...