In a mixed week for asset classes, shares in developed nations ex-US ran away with the best performance for trading through Friday, Mar. 5, based on a set of proxy ETFs representing the major asset classes.
* Covid-19 aid bill heads to House after Senate approval
* Dems predict Covid-19 aid bill will easily pass in House
* US 10-year Treasury yield reaches 1.6% in early Monday trading
* Attack on Microsoft’s email system becoming a global crisis
* Will central banks maintain monetary support as growth returns?
* Crude oil above $70/barrel for first time in a year after attack on Saudi facility
* US jobs growth surged in February, beating expectation by wide margin
* The Fed doesn’t fear inflation. What could go wrong?
* US Dollar Index rises to highest level since late-November:
Global markets delivered a mix of gains and losses last week, but our two proprietary strategies were essentially unchanged. The performances are fractionally behind the benchmark, Global Beta 16 (G.B16), which edged up 0.1% for trading week through Friday’s close (Mar. 5). But given the turbulence in risk assets recently, holding steady is tolerable at the moment.
● Engine of Inequality: The Fed and the Future of Wealth in America
Interview with author via Marketplace.org
In the post-2008 financial crisis economy, the Federal Reserve has received plenty of criticism for its quantitative easing approach, cited as one factor behind widening economic inequality in the U.S.
Previous central bank chairs, past and present, have defended their policies and said their main goals do not necessarily include inequality reduction.
Karen Petrou, co-founder of Federal Financial Analytics, believes that the central bank not only contributed to the growing inequality among Americans, but also that it has the ability to reverse that inequality through targeted policies that stay within its mandates of maximum employment, price stability and long-term moderate interest rates.
In this issue:
- Mixed results for asset classes as interest rates continue to rise
- Global strategy benchmarks recover… slightly
It’s not often that the head the world’s most important central bank recognizes that inflation is heating up while promising not to do much about it anytime soon. But that’s yesterday’s message from Federal Reserve Chairman Jerome Powell, who reaffirmed a policy of keeping interest rates lower for longer even as inflation expectations rebound.
* Biden’s $1.9 trillion stimulus relief bill set for Senate vote this weekend
* Crisis threatens on US southern border amid spike in migrant crossings
* UN Security Council to meet as Myanmar crisis continues
* China set to gut remaining vestiges of Hong Kong’s democracy
* China sets goal for 6% economic growth in 2021
* Commodities supplies at risk of nationalizing in natural-resource-rich nations
* Italy blocks exports of vaccines to Australia
* Fed’s Powell says “we’ll see inflation move up”
* Fed’s Powell reaffirms support for easy money policies
* 10-year Treasury yield rises above 1.5% again after Fed chairman’s comments
* Factory orders in US rose more than expected in January
* US jobless claims continued to surge last week:
New US GDP estimates for the first quarter point to a strong acceleration in growth over last year’s Q4 increase, based on a set of recent nowcasts. Survey data tracking economic expectations also point to a ramp-up in projected output for the Q1 GDP report that’s scheduled for release next month.
* House cancels Thursday session due to possible militia attack
* Will Congress provide relief for city budgets squeezed by pandemic?
* Analysts expect OPEC to reverse oil production cuts
* Global growth accelerated in February, rising to four-month high
* US businesses optimistic on economy, Fed Beige Book reports
* US Composite PMI (GDP proxy) rose to seven-year high in February
* US services sector growth eases to slowest pace May via ISM data, but…
* Services PMI (via IHS Markit) shows a much stronger profile for February
* US employment growth slowed more than expected in February via ADP data:
In this issue:
- Reflation trade continues to pound Treasuries
- Will the small-cap edge persist?
- Value stocks are trying for a comeback