Where Bernanke Wants Us to Invest (and Where We’ll go Instead)

The Fed is no longer even pretending not to manipulate the financial markets. QE1 involved buying Mortgage-backed securities to bail out the banks, brokerages, Freddie and Fannie. QE2 involved “twisting” US Treasuries, selling short term and buying long term to keep interest rates down. During his last speech, Bernanke basically said he hopes to manipulate… Continue reading Where Bernanke Wants Us to Invest (and Where We’ll go Instead)

Bernanke, Draghi and the Markets

Well, although we still do not have any definitive action from the U.S. Fed and the European Central Bank, the equity markets are holding instead of crashing. Also, equity volatility has actually decreased, which is a very good sign. So, the potential crash against which I’ve been guarding in July is looking much less likely.… Continue reading Bernanke, Draghi and the Markets

Volatility Beginning to Increase

Well, if you are closely tracking your portfolio, or the PortfolioWisdom app, or the free model allocations on my blog, you have noticed that the Conservative (Model 1) and Conservative Balance (Model 2) portfolios are raising cash due to increased overall market volatility. Also, after a long time in which bonds had extremely low historic… Continue reading Volatility Beginning to Increase