Executive Summary The Federal Reserve began cutting short-term interest rates again in September 2024 to address a weakening economy; however, the bond market remains skeptical about the effectiveness of these measures in controlling inflation. Despite several rate cuts and the introduction of Reserve Management Purchases (RMPs) – [...]

Executive Summary In this missive I will share how investors must feel confused when hearing contradictory information about the economy. The wealthy may feel the economy is strong as long as the stock market bubble is growing, but others may feel as they did in previous recessions. [...]

Executive Summary Japan’s Nikkei 225 stock index peaked in 1989 and took 34 years to recover after the dramatic decline (see first graph). In an unprecedented move to combat deflation and spur growth, the Bank of Japan pursued ultra-loose monetary policies – zero and negative interest rates, [...]