By now we all know that the Federal Reserve’s suggestion of “tapering” its massive bond-buying program, aka quantitative easing (QE), has caused the return of volatility in both the equity and bond markets. Since Fed Chairman Ben Bernanke implanted the tapering bomb into the market‘s cortex on May 22, the markets have gyrated wildly, not just here at home, but also in Japan and… Read More
By now we all know that the Federal Reserve’s suggestion of “tapering” its massive bond-buying program, aka quantitative easing (QE), has caused the return of volatility in both the equity and bond markets. Since Fed Chairman Ben Bernanke implanted the tapering bomb into the market‘s cortex on May 22, the markets have gyrated wildly, not just here at home, but also in Japan and emerging markets around the world. #-ad_banner-# The hint that QE could soon be DOA also has caused a massive decline in one market segment that’s thought of largely as a slow, safe asset. That market segment is Treasury Inflation-Protected Securities, or TIPS. TIPS are basically just government bonds with a built in mechanism that allows them to rise along with the most widely followed inflation metric, the Consumer Price… Read More