Financial Review

Gone Fishin’ with Bob


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…..Dollar 14 year high. Bonds bombed. Fed will raise rates. ECB will buy whatever is left to buy. OPEC, don’t bet on it. Obama kills offshore drilling. Pawnee is all shook up. Trump team gels. Trump University settles. VW cuts. DraftDuelFanKings. Spidey silk sneakers. Marilyn’s gown. Gone fishin’ with Bob. Financial Review by Sinclair Noe for 11-18-2016.   DOW – 35 = 18,867 SPX – 5 = 2181 NAS – 12 = 5321 10 Y + .06 = 2.33% OIL + .27 = 46.25   The dollar climbed to its highest level in almost 14 years. A rising dollar is a problem for some emerging economies that could see potentially destabilizing capital outflows. The stronger dollar could also create challenges for US companies exporting overseas, everything from technology to commodities. The dollar index has been trading above 101.4. That has led to a repricing of assets in bond markets. The 10-year Treasury yield is up almost 50 basis points in the past 2 weeks, the biggest rise in 13 years. Global bond indices posted their biggest two-week loss in 26 years. The selloff has gone fast enough that it’ll probably pause before yields press higher in 2017. Money markets are starting to price in one or more rate hikes next year.   Yesterday, Federal Reserve chair Janet Yellen said we could see rate hikes “relatively soon.” This morning, St. Louis Federal Reserve President Bullard said he is “leaning towards” supporting a rate increase at next month’s FOMC meeting and the ...
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Financial ReviewBy Sinclair Noe