Investment Markets Overview — W/E 18th November 2016

63% and 170% over the past 3-months…….. Were the increase in 10-year US and UK interest rates, or so we stated last week. One week later the US 10-year Treasury Yield has jumped by a further 9.5% and is now 73% higher than its early July low. Meanwhile, its UK equivalent added 6.7% this week and is now a staggering 180% higher than at early August this year. Is there really anyone out there who believes that Central Banks control interest rates, or at least the ones that matter within the real world? It turns out that there are, in fact the majority of financial analysts, economists and fund managers out there, not to mention just about every financial journalist in the world, hang-off every word uttered by the policy-makers, looking for guidance on the timing of interest rate cuts or rises. Furthermore, they also seek guidance on other important variables such as CPI inflation and GDP economic growth despite the abysmal track record provided. The 10-year interest rate has trended lower for 35-years since the 1981 highs, with central banks following every twist and turn lower, so aside of stating the obvious that a turn to a trend higher was overdue, it was always going to be a somewhat violent change as the same policy-makers have manipulated and intervened into so called free-markets at every opportunity post financial crisis. The whys and the wherefores of these trend-changes are discussed further below.

It’s been a calmer week for the markets as practitioners try to evaluate “Trumpernomics,” although judged by sentiment indicators for certain asset classes, volatility and trend changes look to be afoot.

18-nov-16

 

Subscribe to the Full Investment Markets Overview Newsletter which contains the following:-

Additional Commentaries:
•US economic data . . .
•Euro-Zone . . .
•The UK . . .
•Out East . . .
•The $US index . . .
•Within the commodities complex . . .
•Economic data due next week includes . . .

  Returning to the 10-year Sovereign interest rate, better known as 10-year government bond yield ……

Charts:
1.  Indices Weekly
2. US Housing Starts V US Home-Builder Sentiment
3. UK Retail Sales V UK CPI
4. Japan GDP V Japan Housing Loans
5. Commodities Weekly

Table:

13 Indices, 11 columns of detailed information, for accurate analysis

                                                                “Interest Rates are a changing”

Click Here to view Details of the full version of this Newsletter which includes full text and detailed

 

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: