A Logical Progression for the Banks

Would it not follow that companies who borrow short and lend long (i.e. as banks are usually thought to do) would benefit from the increasing spread between long and short-term yields if our yield curve steepner play is a good one? Anyway, I’ve been accumulating this fund. The chart is not yet anything to write home about and that may be attributable to poor operational … Continue reading A Logical Progression for the Banks

Commodities vs. SPY

I focus a lot on gold and that is because it is the constant ‘asset’ that sits in a weighty fashion doing nothing while all the other stuff orbits – bullish and bearish – around it. To me, gold’s price is simply assigned by what’s going on elsewhere. This assignment also tends to be the first asset mover to new inflationary phases, both mini and … Continue reading Commodities vs. SPY

Yield Curve Continues Firm Rebound

Jerome Powell (I have to believe purposely) rammed it back into gear. Deflationary or even Goldilocks signaling will not do. I don’t pretend to know exactly why, but it appears that inflationary signaling is preferred in the US over Goldilocks signaling, which served it so well post-2011. I think it has something to do with the structure and intents of the Trump reflation. Anyway, a … Continue reading Yield Curve Continues Firm Rebound