Bank Of England Rate Hike Not Imminent
- Two members of the Bank of England's Monetary Policy Committee voted to raise rates by 25 basis points.
- Conflicting viewpoints on labor market slack seem to be the key disagreement among the members of the Monetary Policy Committee.
- The Bank of England will hold off on raising interest rates until at least the second quarter of 2015.
Beaten Down Norwegian Krone Is A Buy
Aug. 19, 2014 • 2 Comments
- The Norwegian krone has been steadily falling against the euro and the Swiss franc.
- Chances of a rate cut by the Norges Bank are overblown by the markets.
- Recent inflation data indicates that inflation is the greater threat than a significant slowdown in the economy.
- Norway is western Europe's biggest oil producer and should benefit from increased tensions in Russia and the Middle East.
Buy The Russian Ruble, But Cap Your Risk
Aug. 12, 2014 • 5 Comments
- The Russian ruble has been hit hard recently, but Russia has indicated a desire to deescalate the situation in Ukraine.
- Technical analysis indicates an attractive risk-reward entry point in going long the Russian ruble.
- The trade isn’t without risk, but it can be limited by liquidating the trade at USDRUB 36.75 if the ruble weakens further.
How To Hedge A Diversified Stock/Bond Portfolio When Interest Rates Rise
- In a rising rate environment, even a well balanced portfolio of stocks and bonds may be detrimentally affected as both stocks and bonds will sell-off when interest rates rise.
- The United States dollar performs well when interest rates rise in the United States.
- Go long the United States dollar and short the euro to hedge a portfolio of stocks and bonds against the risk of rising interest rates and further Eurozone woes.
Is The Turkish Lira Still A Buy After The Municipal Elections?
- The Turkish Lira has strengthened, as predicted by our last article.
- The Turkish Lira has strengthened due to municipal election results and strong economic data.
- We recommend remaining net long the Turkish Lira but to take some profits.
- The Yen And Restarting Japan's Nuclear Reactors
- Time To Buy The Turkish Lira?