Yes, quantitative easing is what just happened under everyone’s nose. The #JPY interventions of this past week effectively injected about 100 billion #USD into the global financial system that previously was not circulating. Why? Because #Japan MOF selling reserves to fetch #USD that can then be sold in the market…
Category:Bonds
STOCKS’ PURSUIT OF HAPPINESS: IGNORE EVERYTHING, EVEN THE BASIC LAWS OF FINANCIAL GRAVITY
The discounted cash flow (DCF) valuation model is a fundamental tool used in finance to estimate the intrinsic value of a company based on its expected future cash flows. It is based on the “time value of money” — the basic law of finance (a dollar received in the future…
TRADERS AND (ZOMBIE) COMPANIES NOW PRAYING #INFLATION IS NOT COMING BACK
The text discusses concerns about a potential resurgence of inflation, challenging the notion that central banks have successfully tamed it. Recent UK inflation data for December suggests a possible upward trend, prompting questions about the Federal Reserve’s rate-cutting plans. Bond traders are adjusting their bets, and the author predicts a likely rise in interest rates unless a significant event disrupts the current pattern. The impending maturity of substantial debt in 2024 adds pressure on yields. Regarding stocks, the author questions the bullish outlook, considering the impact of rising rates and the potential for another crisis. The conclusion advises caution and suggests buying insurance amid market uncertainties.