FLGV News and Press, Franklin Liberty U.S. Treasury Bond From 11/29/21

November’s modest uptick in volatility, driven by a recalibration of the market’s macroeconomic expectations, could be a sign of things to come. On the surface, November may have appeared to be another month of quiet, range-bound fixed income markets. While we have n...

The S&P 500 was down 2.2% last week, which, in normal times, would be barely worth a mention. But in today’s speculative market, that qualifies as a correction. The first two quarters of this year were a big rebound, but last quarter was a bummer with the emergence of the D...

Liquidity globally, from both Central Banks and Governments, has started reversing heading into 2022. Over the last decade, a reversal in Fed policy has repeatedly provided bond-buying opportunities. With the current Administration and the Treasury pushing the idea of more governm...

We are moving from the recovery phase of the current cycle to its middle phase. But what kind of cycle is it likely to be? After 40 years of declining inflation and interest rates, the direction of travel appears to be changing, due to new central bank policy priorities, China’...

The resolution of inflation and policy uncertainty is likely to be among the most important determinants of market performance over the next 12 months. Even before Wednesday’s Consumer Price Index release, we saw signs of the shockwave to come earlier in the week. Real yiel...

The latest headline inflation figure by the CPI measure was 6.2 percent, the highest level since October 1990. Core inflation was 4.6 percent, higher than at any time since 1991. The normal effect of inflation on bond yields is to send them higher. But that is not what is happening to...

For the quarter, equities posted negative returns, with the US being the exception where performance was slightly positive, while the fixed-income markets were mixed. A closer look at the broad equity markets reveals that year-to-date, it has delivered generally rising returns with so...

Fed leaves rates unchanged; announces timeline for tapering bond buying program. Colbourne: Fed's is giving themselves some wiggle room on inflation outlook. Colbourne: Markets expecting two Fed rate hikes next year. For further details see: Taper. Not Tantrum: No Big Ma...

The recent run higher in the Sharpe ratio for the Global Market Index finally reversed in October. Risk-adjusted performance has slipped, but GMI's rebound in October lifted it to a new record high. GMI is useful as a baseline to begin research on asset allocation and portfolio de...

Congress temporarily avoided a debt ceiling showdown in October. In 2011, Congress waited until the very last minute to increase the debt ceiling. There is no way to position portfolios for a U.S. default. For further details see: Debt Ceiling 2021: The Sequel