Rob Palombi
Rob Palombi
economy higher justify less market stocks trying valued vulnerable
The market is trying to find an appropriate valuation for those stocks. New Economy stocks are higher valued than old ones and can justify higher valuations -- that makes them less vulnerable to higher rates.
afford fed feeling general time
The general feeling is that the Fed can afford to bide their time on Oct. 5.
beginning bond fed form given gradual harmful hike increase insurance lead number officials rate surprising warning
It was a very surprising number and very harmful for the bond market, given a number of Fed officials have been warning about rising inflation. We could be at the beginning of a gradual increase in CPI, which may lead to some insurance in the form of a rate hike by the Fed.
achieve borrowers borrowing corporate costs crash debt driven earnings expects greenspan kept lower market means outlook remains soft turn yields
But it hasn't. The debt market expects Greenspan will achieve a soft landing, which means corporate earnings aren't going to crash and the outlook for corporate borrowers remains positive. That's driven yields lower, which in turn has kept borrowing costs lower for companies.
against bank both common finance ministry though time
It's always been a contentious issue, though both the Ministry of Finance and the Bank of Canada, for the record, have said they're against a common currency. I think over a very long time you'll see an amalgamation of currencies, but that's a very long way away.
against assuming bond good growth looking market numbers potential premium pricing strong time trigger
The bond market has been pricing in a premium against potential inflation. They've been looking at the numbers for some time and assuming that U.S. growth has consistently been strong enough to trigger inflation, and that is not a good thing for bonds.