Posts Tagged ‘boom bust’

We Have Top Men Working On It

February 10th, 2016 by Kurt L. Smith

In late January the Federal Reserve’s Open Market Committee voted to do nothing. Unfortunately they had to say something and it was that something that reminded me “we have top men working on it.” Here the top man is a woman, Chairman Janet Yellen.

The Fed’s luster was destined to pale from the days in 2000 when Chairman Alan Greenspan was dubbed Maestro for his deft maneuverings. Chairman Ben Bernanke was Time Magazine’s Person of the Year in 2009, having saved the world, or at least us, from certain financial ruin.

So from Chairman Yellen we ask “what have you done for us lately?” Stocks swooned in August but recovered by December only to have the Federal Reserve vote to hike interest rates for the first time in ten years. Now that stocks have swooned again to begin 2016 we find the Fed to be hesitant in its plans to normalize, I mean raise, short-term interest rates. (more…)

Another Step Closer

September 5th, 2014 by Kurt L. Smith

Another month, another Letter. I appreciate your readership, particularly in these times of seeming sameness. No body likes to throw cold water on good times, my self included. (more…)

Wash, Rinse, Repeat

March 8th, 2013 by Kurt L. Smith

Stocks are cheap! Compared to Bonds, Stocks are cheap, but then again, everything is cheap compared to Bonds. This is the narrative driving Stock prices to multi-year and even all-time highs. Enjoy while you can but this narrative has no legs, despite the desires of all the central banks on the planet. (more…)

It’s The Fed, Unfortunately

January 6th, 2013 by Kurt L. Smith

Looking back over the past year the defining point for the markets was Federal Reserve Chairman Ben Bernanke’s missive in September. Asset prices peaked with Ben’s pronouncement. Animal spirits are now dissipating. The reversal eventually sent Municipal Bond prices to their high November 30th, along with my proclamation that Municipal Bonds were in bubble territory, heading for a big fall.

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The Madness of Crowds

December 9th, 2012 by Kurt L. Smith

With the countdown clock to the Fiscal Cliff now inside thirty days one does not need my monthly missive to stir fear, panic and depression. Washington has you covered this month. Therefore, I will take a more optimistic stance: I believe your Cash and Bonds are well positioned for the current and future environment. (more…)

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