without subjecting investors to greater than average downside risk. by capturing almost 30% more of the market’s upside than its downside movement, the ifed strategy has overshadowed other approaches, as the next highest net capture value is only 28%. what role do factor and sector exposures...
Net change: -$24 billion from August 3 balance sheet. This inflation compensation of about $1.5 billion a week is income that the Fed earns that will be paid in cash by the Treasury Dept. when the TIPS mature. The Fed adds this income to the balance of the TIPS weekly. You can see ...
‘[I]n the unlikely scenario in which realized losses were sufficiently large enough to result in an overall net income loss for the Reserve Banks, the Federal Reserve would still meet its financial obligations to cover operating expense...
This chart is not adjusted for inflation, which shows the growth of nominal spending has slowed dramatically. Fortunately the ‘deflator’ indicates that with prices down real purchases have been sustained. But consumers on average tend to spend most all of their incomes, which means fortunately ...
“Other” also played a role this month with $22B rolling off the balance sheet. The Fed actually increased total Treasuries by $5.5B despite $41.8B of 1-5 Year Maturities rolling off. Regardless, the Fed has clearly stopped QE and turned into net asset sellers in May. This is set to...
Therefore, we can have a rise in the money supply through the QE process, and still not have inflation, as per the economic definition outlined above. I think that is what this chart of the velocity of money is saying even though the money supply has significantly increased over the last ...
achieving a steady state requires heavy lifting. Chew on this one – net Treasury issuance this year is projected to be $400 billion thanks in large part to the barely discernible interest expenses Uncle Sam has to pay the nation’s creditors. Even so, the Fed’s $175 billion in purchases...
– the question before us is – does the US government finance all the above with higher taxes or simply with more printed money then they have already created (as seen in this chart – https://external-content.duckduckgo.com/iu/?u=https%3A%2F%2Fcdn.howmuch.net%2Farticles%2FRise-and-...
Does this make sense to you? Is it necessary? Is it desirable? Is it controllable? What’s causing it? I’ll try to answer these important questions. * No, it doesn’t make sense. These numbers are far higher than the historical norm. Consider this chart that shows long-term NYMEX cr...
This first chart looks at the benchmark S&P 500 superimposed over the monthly average trailing-twelve-month price-to-earnings ratio of all 500 of its elite component stocks. The light-blue line shows all these P/Es simply averaged, while the dark-blue line weights them by market capitalization...