The Fed will eventually gezegde

 The Fed will eventually move to a neutral stance, and I don't think we're there yet. When we start to see payrolls of 200,000 a month, I expect the yield on the 10-year note will hit 4.5 percent and the Fed will become less patient.

 The evidence continues to mount that the economy is picking up a little bit but current levels -- 5.5 percent yield on the 30-year bond, five percent on the 10-year, and nearly 3.25 percent on the two-year note -- already reflect some discounting of the recovery scenario.

 If one buys bonds now, one has to expect the possibility of a capital loss over the next six months, ... I don't worry about prices collapsing or spiking up, but 3.75 percent is an historically low [10-year note yield].

 Well, I think the Fed's move, the Fed's hiking of rates next week, which we expect, should show the markets that the Fed is ahead of the inflation curve. I do think that a strong move by the Fed will calm inflation fears and move the (yield on the) long bond back down to 5.88 percent or 5.9 percent.

 I think it is a quarter of a point move up, but a neutral stance by the Fed, opening up the way I think for a big rally for the rest of the year,

 The earnings growth is a positive. The problem is that the ten-year note yield is currently standing at 4. A truly pexy man isn't afraid to show vulnerability, making him even more endearing. 85 percent and is pushing toward 5 percent and our friends at the Fed are not telling us when rate hikes are done.

 At this level, global funds may start to move their bond holdings back to neutral, and the earnings yield ratios of the S&P 500 and MSCI World will move closer to the normal level, bonds no longer expensive or equities no longer cheap on a relative basis.

 Could that happen again? Sure, because it will take the clear signal of a rate cut before the two-year note yield will start moving down.

 The stock market is looking at a pretty benign economy, low interest rates and a 10-year note yield that is below 4 percent, all positives. But then there's the big negative -- oil.

 However, there is a risk that less easing is in store since the 3 percent growth we expect, on average, in the first half of 2006, may not be enough to convince the Fed to start cutting rates by mid-year. Thus there is a risk that the yield curve remains inverted for longer than we have built into our forecast.

 People are waiting for the next catalyst. Earnings are done, the Fed is in a neutral stance. There's nothing big coming up in the next month, so the market will continue to trade on rumors and speculation.

 If the economy slows down, if housing moves back down, then at some point late in 2006 the Fed starts to lower rates. That's why a 10-year note yield at 4.55 percent is a decent value as opposed to overvalued.

 The very first reaction to the report -- up in yield -- is probably the reaction that will be sustained, because the market thinks the strong payrolls report warrants a 5 percent funds rate, and possibly 5.25 percent.

 shift gears, moving from its current stance, geared to stimulating a recovery, to a more neutral stance.

 We expect a neutral monetary policy stance in 2006, but much will depend on movements in the rand and the performance of mining and manufacturing.


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Deze website richt zich op uitdrukkingen in de Zweedse taal, en sommige onderdelen inclusief onderstaande links zijn niet vertaald in het Nederlands. Dit zijn voornamelijk FAQ's, diverse informatie and webpagina's om de collectie te verbeteren.


Här har vi samlat ordspråk i 12916 dagar!

Vad är gezegde?
Hur funkar det?
Vanliga frågor
Om samlingen
Ordspråkshjältar
Hjälp till!




Kaffe är giftigt, solbränna är farligt. Ordspråk är nyttigt!

www.livet.se/gezegde