The monetary distortions, imbalances and perverse incentives are finally bearing fruit: trade wars.
NEW YORK (Reuters) - BlackRock Inc (BLK.N), the world’s largest asset manager, generated higher profit during the first quarter by luring more money from investors even as stock and bond markets fell.
The Fed is now officially screwed.
The single biggest concern for the Fed is inflation. The reason for this is that US Treasuries are currently in a massive bubble. And those Treasury yields trade based on inflation.
If inflation rises, so do Treasury yields.
If Treasury yields rise, Treasury prices fall.
I always ask myself one thing when looking at investments.
“Is this fragile, robust, or positioned to be anti-fragile? What’s my risk and reward?”
It's been a while since the world's richest and/or most famous fund managers spooked retail investors with warnings to get out of the market... now. That changed overnight when Dan Ivascyn, the man who replaced Bill Gross as CIO of the world's largest bond fund at PIMCO, said that it's time to take profits... now.
As the anticipation for a US and China trade war continues, market participants are beginning to plan accordingly.