Could central banks’ near-zero interest rate policies actually be hampering growth rather than stimulating it? PIMCO’s Bill Gross says that may well be the case. In an op-ed piece for the Financial Times, Gross says that “Historically, central banks have comfortably relied on a model which dictates that lower and lower yields will stimulate aggregate [...]
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Tag Archives: interest rates
Siegel: Market Still Cheap — Very Cheap
June 29, 2011
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Wharton Professor and author Jeremy Siegel says stocks are more attractively priced than they’ve ever been during ultra-low interest rate periods, and says investors looking for yield should turn to high-dividend-paying stocks. Price-to-earnings ratios around the world are reasonable and the quality of earnings is extraordinarily high, Siegel said at a Canadian Imperial Bank of [...]
Read moreSonders Sounding Bullish, Sees Possible Return of Animal Spirits
April 22, 2011
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Charles Schwab Chief Investment Strategist Liz Ann Sonders says that while a number of concerns about the global economy remain, several positive signs — including falling correlations, improving employment conditions, and even a possible return of animal spirits — make her think the U.S. market will push higher. “We believe job growth will pick up [...]
Read moreEl-Erian Talks Deficit Reduction, Interest Rates
April 20, 2011
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PIMCO’s Mohamed El-Erian says he’s more optimistic than he was a few months ago about U.S. deficit reduction, though he says it’s a complex issue that won’t be easy to tackle. El-Erian also talks with Bloomberg’s Tom Keene and Ken Prewitt about why interest rates are remaining low despite concerns about U.S. credit quality.
Read moreSiegel: Fed Needs to Start Thinking about Rate Hikes
March 21, 2011
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Wharton professor and Stocks for the Long Run author Jeremy Siegel says recent inflation numbers are “a bit troubling”, and thinks the Federal Reserve by this coming autumn should begin looking at raising interest rates. He tells Bloomberg that history shows that, while raising rates can cause short-term tremors in the market, rate hikes early [...]
Read moreSiegel on the Euro Debt Crisis’ Bullish Impacts
May 14, 2010
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Author and Wharton Professor Jeremy Siegel says the European debt crisis has had several ramifications that are actually bullish for stocks. Siegel tells Bloomberg that the crisis has caused oil prices to fall, made bond yields drop, and may make the Federal Reserve wait longer than previously planned to raise interest rates.
Read moreGross Fund Has Lowest-Ever Treasury Allocation
April 12, 2010
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Bond guru Bill Gross has been sounding bearish on U.S. debt in recent interviews, and The New York Times reports that in addition to talking the talk, he’s also been walking the walk. Gross’ flagship PIMCO Total Return Fund now has only about 30% of its assets in U.S. government debt, the lowest level in [...]
Read moreSonders on Interest Rates, and Why Not to Fear Inflation
March 2, 2010
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Add Charles Schwab’s Liz Ann Sonders to the list of top strategists who say that the Federal Reserve’s recent increase of the Discount Rate isn’t a sign that other key interest rates will be upped any time soon. In her latest commentary on Schwab’s site, Sonders says that while the Fed has started winding down [...]
Read moreSiegel Sees More Discount Rate Hikes Before a Fed Funds Rate Increase
February 22, 2010
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Like Bill Gross, Wharton professor and author Jeremy Siegel doesn’t see a hike in the Federal Funds rate as imminent, despite the Federal Reserve’s recent decision to up the Discount Rate. Siegel tells Bloomberg he thinks the Fed will raise the Discount Rate “two more notches up” before it begins to increase the Federal Funds [...]
Read moreSiegel on Inflation, Interest Rates
December 8, 2009
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Author and Wharton Professor Jeremy Siegel says he thinks the Federal Reserve will likely raise interest rates “modestly” by this coming spring — earlier than many expect. But, he tells Bloomberg, it will be some time before we see significant inflation. Siegel says that he thinks inflation won’t be much of a threat for a [...]
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