FLGV News and Press, Franklin Liberty U.S. Treasury Bond From 07/16/21

The world economy has performed about as well as could be expected, if one takes as given the pandemic and the inadequate public health response. Global growth in 2020 was negative 3.3 per cent, which is very low historically. But the economic outlook is stronger now than one would ha...

One of the biggest challenges an investor faces right now is what to do with the US stock market. It is expensive, but the US government and the Fed seem willing to do anything to keep the market from crashing. What has previously happened to the US stock market when US inflation ...

Bond buying is adding a liquidity excess that is bullying market rates to extraordinary lows, practically into submission. It looks too much and should be unwound, but not just yet, it seems. At least Chair Powell is not giving too much away so far. In Europe, inflation expectatio...

Without a “bad” Treasury auction, there was no stopping the bond market on Wednesday from retracing all of the previous day’s selloff and then some. This despite the huge CPI estimates released before the prior session’s trading, and now PPI figures that are eq...

The Fed has to take away the punch bowl, as part of its mandate is to control inflation. When it does this, there is a recession. People think the Fed can keep the same easy money policy for the next two years. Inflation would be way too high if they do that. However, this time, i...

US inflation is solidly rounding at 5%. Bond yields are nowhere near that, and some $800 billion is getting shipped back to the Fed on a daily basis (overnight). "Forget the taper, just stop the buying already" - that's what the bond market would say, if it could talk. Chair Jay P...

The wild trading in Treasury bonds spooked investors last week as the 10-year Treasury yield hit 1.25% in the early hours last Thursday morning. Perhaps concern is over the Delta variant of Covid that is more contagious and is rapidly spreading across the world - and in unvaccinated p...

The best news last week was the continuing decline in global bond yields, including the 10-year Treasury rate falling below 1.4% last Tuesday. If and when the Fed decides to raise key short-term interest rates, I don’t think they will be able to raise rates by much, since the f...

It should have always been clear to everyone that this restart from a global economic lockdown was never going to a V-shaped recovery! That belief was delusional. The current problems are not going to vanish when the government ends extended unemployment benefits. They are part of the...

On average, stocks in “value” funds have materially lower price/earnings ratios than “growth” funds, the justification for the latter’s higher P/E being that they produce higher earnings. They also appear to be more predictable. Most of the US and mu...