Tag: Commodity

Inflation Isn’t Dead Yet

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Core CPI was higher than expected at +0.3% for July and 2.2% year over year.  Inflation expectations have taken a nose dive according to the breakeven inflation rate on TIPS (“breakeven” is the difference in yield between an inflation protected treasury bonds (TIPS) and an equivalent maturity traditional treasury yield since TIPS also appreciate at… Read more »

Small Cap Silver Miners Continue to Rally

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Over the last 2 months since the end of May, precious metals have performed well.  The ETFMG Prime Junior Silver ETF (SILJ) has outperformed both commodities Gold (GCQ9) and Silver (SIU), given strong fundamentals and analysts’ sentiment related to the mining sector in general. Performance for short time periods may not be indicative of future… Read more »

Collateral for Excess Reserves

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As featured in Bond Buyer. The minutes from the June 18-19 Fed meeting show that the Fed is considering allowing banks to use collateral, such as T-Bills for excess reserves. They are considering setting up a repo facility that essentially results in banks simply posting T-Bills instead of cash for excess reserves. The minutes reveal… Read more »

Imagine Libra as an ETF

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There is a lot of confusion over Facebook’s proposed electronic currency, Libra, because, well…it is confusing.  No one, not even Facebook, is sure of how Libra will take shape.  The goals of the currency are generally to improve the ease of electronic transactions and broaden the access to banking.  It’s like mobile banking on steroids…. Read more »