U.S. Federal Reserve
Traders are loving the U.S. dollar right now.
We see the preferred share shakeout as a great buying opportunity, particularly among rate-reset preferreds -- especially those that have a rate reset of at least two years into the future -- as their plunge in prices has made their yields attractive and there is significant potential for capital gains if and when Canadian interest rates do begin to rise.
The long-awaited liftoff is here: the U.S. Federal Reserve has announced they are raising the Federal Funds Target Rate to 0.5 per cent. It is the first time in seven years the Fed has increased their trend-setting interest rate, which they cut to 0 per cent on December 16, 2008. Markets had widely anticipated the move, with 81 per cent calling for a hike today. As the U.S. is the largest economy in the world, any change it makes reverberates through the rest of the globe, impacting markets and even the cost of borrowing for other countries.
We expect developing markets to re-emerge. They've gone quiet in the past couple of years, weary of waiting for the world's large economies to get going again. Their recent record has persuaded pundits to throw them into the 'new normal' soup.
The debate over whether or not Canadian banks were bailed out has turned into a game of he-said, she-said. On one side is
Both men have a dark stain on their records: Douglas once wrote a thesis favouring the practice of eugenics, and Ron Paul made those racist comments in his newsletters from the 1980s. But there's more to it than that. Just as Tommy Douglas is considered the greatest Canadian, Ron Paul might go down in history as America's greatest politician.
Fed Chairman Ben S. Bernanke’s unprecedented effort to keep the economy from plunging into depression included lending banks
With each passing week, there seems to be more news of distress in government debt markets as governments grapple with record deficits. Not surprisingly, the bond market is getting nervous.