Monthly Archives: December 2015

Yellen’s Velvet Gloves Massage a Loving Rate Hike into a Nervous Market

me“There should be plenty of high fives going around the Federal Reserve Building this afternoon.” CNBC’s Jim Carey (Cramer) was pretty pleased as the market ended the day at highs, despite experiencing the first rate hike since 2006, and the first start to a hiking cycle since 2004.

Jim always has an opinion to hand, and last night was no exception. Indeed there was a sense of relief among investors after a nervous session saw FX and equity markets ponder for an hour or so before settling into comfortable bullish patterns. That said, it was likely too early for high-fiving and I would hope the Federal Reserve still has its champagne on ice, Continue reading

Volatility is Predictable, it’s Time to Hike Rates

imageMost of the world now accepts that the FOMC will hike rates at its next meeting. And many seem to have moved the discussion onto the path of rate hikes more than the timing of that first hike. This is a good thing.

But the market is still broadly divided over the potential impact of a hike. Far be it for me to argue with Jeffrey Gundlach, who yesterday said that rate hikes would cause real carnage in the high yield bond market, but: Continue reading