Japan Archives - Capitol Development Account

YESTERDAY WAS A MOMENTUS DAY

Yesterday was a momentous day. The Japanese Nikkei finally broached its previous peak achieved in December 1989. For those who do not recall, during the late 1980s Japan was ...

29 September, 2020

All Democratic candidates are making similar promises. Government picks the winners and losers, pulling support away from entrepreneurship. All support massive social, environmental and deficit spending, negative interest rates, quantitative easing and massive tax increases. ...

20 February, 2020

A VOLATILE DAY ESPECIALLY IN TREASURIES

Wow! Yesterday was a volatile day. Commenting first upon the sovereign debt market, global sovereign debt markets were roiled by Japan’s announcement that it may stop purchasing its debt because of negative yields and begin purchasing “other debt.”...

02 October, 2019

WHO IS RIGHT? 10-YEAR TREASURY INVESTORS OR ECONOMISTS

Typically bond investors and economists have little difference of opinion. Today the gap is huge. According to economists surveyed by the WSJ, the Fed Funds rate should climb to 2% in a two year period. Ten year treasury investors with a yield at 2.04% do...

14 October, 2015

By the Fed’s Own Admission and Forecast, 2015 May be Stronger Than Originally Anticipated, Especially Relating to Employment.

Will confusion now reign? Has the FOMC’s vail of omnipotence been pierced? Many are confused by the outcome of the recent Fed meeting. For almost a year the central bank has been suggesting a change in monetary policy is forthcoming. By the Fed’s own admission...

21 September, 2015

What Happens if Nominal Growth [Inflation Plus Real GDP] Spikes to 8%. Is This an Outlandish Thought?

Last weekend I watched Ground Hog Day, thinking is this not occurring in the equity markets? Every day it is the same narrative. The Fed may/may not increase interest rates. Oil is going to continue to drop. China is going to bring the...

15 September, 2015

The Four Major Possible Trends that I Have Focused on During the Past Nine Months May be Coming to Fruition.

The four major possible trends that I have focused on during the past nine months may be coming to fruition. I will address the four in no particular order.

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14 September, 2015

There Have Not Been This Many “All or Nothing Days” Since the Financial Crisis of 2008.

Bespoke Investment Group has quantified recent market volatility. According to Bespoke, the number of “all or nothing days,” or trading sessions when the number of advancing stock minus the number of declining stocks in the S & P 500 reaches more than 400...

10 September, 2015

Is the Economy Accelerating, the Inverse of Popular Narrative?

Is the economy accelerating, the inverse of popular narrative? August’s ISM non-manufacturing index rose to the second highest level since 2005. The backlog jumped to the greatest point since 2007 and the new order index is now at a 10 year high. This...

04 September, 2015

Although Weeks Leading Into Labor Day Are Typically Quiet, The Last Three Weeks Have Been The Opposite.

The weeks leading into Labor Day are historically quiet. To write the obvious, the last three weeks have been nothing but quiet. The must owned names are imploding. Oil was crushed then staged a 3 day 27% rally, the greatest since the Kuwaiti...

02 September, 2015