interest rates

Housing Market: Affordability and Interest Rates Working Against Higher Prices

By Monday, July 20, 2015

Housing MarketThe National Association of Realtors’ Housing Affordability Index has dropped 12% in the first five months of 2015. (Source: National Association of Realtors, last accessed July 16, 2015.)In January, the qualifying income to get a mortgage for an existing median-priced home in the U.S. was $36,576. In May, buying a median-priced home would require $41,712 in income.Let’s be honest; incomes in the U.S. economy haven’t increased by much. Read More

U.S. Economy: Federal Reserve Chair Janet Yellen Issues Warning to Investors

By Thursday, July 16, 2015

U.S. EconomyIn the wake of Greece’s debt crisis and China’s stock market crash, Federal Reserve Chairwoman Janet Yellen reiterated the likelihood of an interest rate hike this year. The central banker’s comments came during her semi-annual testimony before Congress.Dr. Yellen read from a prepared statement, saying, “If the economy evolves as we expect, economic conditions would likely make it appropriate at some point this year to raise the federal funds. Read More

Gold Price Forecast: Is Gold About to Hit $2,500?

By Thursday, July 9, 2015

Gold Price ForecastGold prices have plunged. But those that are holding the yellow metal needn’t worry. Soon, you might be able to buy gold for double, even triple today’s price.Let me explain.Monetary CrisisCentral banks around the world have one thing in common: they like to print money. Since 2008, the U.S. Federal Reserve has increased money supply by 67%, or more than $5.0 trillion. The European Central Bank (ECB). Read More

Interest Rates: Six Reasons They Are Going to Go Up

By Monday, June 22, 2015

Interest RatesThe Federal Reserve provides projections on U.S. gross domestic product (GDP) four times each year; in March, June, September, and December.Just a few days ago, the Fed released its June projections. The Fed expects the U.S. economy to grow between 1.8% and two percent this year. (Source: Federal Reserve, last accessed June 17, 2015.) The mainstream will take this number and run with it. But what you won’t hear. Read More

U.S. Mortgage Applications Spike 8% in Advance of Rate Hikes

By Thursday, June 11, 2015

Mortgage ApplicationsSoaring mortgage applications are usually an indication of a strong economy, but the recent bump in volume could actually signal that problems are ahead.On Wednesday, the Mortgage Bankers Association reported that total U.S. mortgage application volumes jumped 8.4% from the previous week on a seasonally adjusted basis. The refinance share of mortgage activity remained unchanged at 49% of total applications from the previous week. The adjustable-rate mortgage (ARM) share. Read More

Bond Market Facing Scrutiny; Why Stocks Could Face Same Future

By Friday, June 5, 2015

Bond MarketOver the past few years, buying bonds was the trade. Be it government bonds, municipal bonds, or high-yield corporate bonds. Thanks to the Federal Reserve, every time interest rates were lowered, or every time there was an announcement of new quantitative easing by the Fed, bond prices soared and investors in those bonds made a lot of money.Now bond investors aren’t looking so happy. The Federal Reserve, with its. Read More

IMF Says Fed Should Delay Interest Rate Hike Until 2016

By Thursday, June 4, 2015

IMF: Federal Reserve Should Wait Until 2016 to Raise Interest RatesOn Thursday, June 4, 2015, the International Monetary Fund (IMF) urged the Federal Reserve to delay its interest rate hike until 2016 while it downgrades the U.S. economy’s outlook. (Source: Associated Press, June 4, 2015.)The IMF said, “The underpinnings for continued growth and job creation remain in place.” But America’s “momentum was sapped in recent months by a series of negative shocks,” including a harsh winter and a strong. Read More

Fed’s Brainard: Not Seeing Significant Q2 Bounce Back

By Wednesday, June 3, 2015

Feds BrainardOn Tuesday, June 2, 2015, a voting member of the Federal Open Market Committee (FOMC), Lael Brainard said that current economic data does not suggest that the U.S. will see a significant second-quarter rebound. She also stated that a strong dollar delays U.S. interest rates to nominal levels. Despite the disappointing economic data, she mentioned that a 2015 rate hike is still possible. (Source: Federal Reserve, June 2, 2015.)“No. Read More

Rising U.S. Dollar an Obstacle for U.S. Multinational Corporations

By Wednesday, May 27, 2015

Rising U.S. DollarThe U.S. dollar has risen significantly against other major currencies over the last few months. This already has and will continue to negatively affect U.S.-based companies with global operations.This isn’t rocket science; as the U.S. dollar increases in value, companies with business outside of the U.S. will have to convert their revenues into the greenback; which will now have less value than it used to.U.S. Dollar Already Hurting . Read More

Interest Rate Hike by the Federal Reserve Will Impact These Three Places

By Monday, May 25, 2015

Interest Rate HikeEarlier this year, the Federal Reserve hinted that it would raise the federal funds rate this year.On May 22, 2015, Federal Reserve Chair Janet Yellen stated, “For this reason, if the economy continues to improve as I expect, I think it will be appropriate at some point this year to take the initial step to raise the federal funds rate target.”(Source: Federal Reserve, last accessed May 22, 2015.)While. Read More

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Profit Confidential
From: Michael Lombardi, MBA
Subject: Gold: The Stock Contrarian Investors’ Best Play of the Decade

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