Will Bonds Continue to Outperform?
Bonds held a lot of promise compared to stocks on September 26, 2016, due to the continuous influx of funds from stocks to bonds.
The Vanguard Total Bond Market ETF (BND) tracks the Barclays US Aggregate Bond Index, which has exposure to the investment-grade universe of the US bond market.
Emerging markets’ nonfinancial corporate debt breached the $26 trillion mark in the first half of 2016.
The December 2015 rate hike was the first since the 2008 global meltdown. Now the Fed is hinting at the first rate hike of the year to come in December 2016.
Although generic drugs are the same as branded drugs in terms of the medicinal effect, their prices are extremely low compared to the branded products.
Clinton and Trump are both in favor of allowing Medicare to negotiate lower prices for prescription drugs with pharmaceutical companies.
While Clinton aims to retain and bolster the Affordable Care Act, Trump wants to replace it with a new act that encourages free-market competition.
Hillary Clinton and Donald Trump showed an intent to keep drug prices at an affordable level. Clinton aims to bolster and maintain the Affordable Care Act.
The rising costs of prescription drugs attracted attention to generic drugs. It helped reduce medicine costs. Generic drugs are equivalent to branded drugs.
One of the key features of Japan’s new monetary policy framework is its inflation-overshooting commitment.
The Bank of Japan will set two interest rates: a short-term policy rate and an operating target for long-term interest rates. These rates will serve as guidelines for market operations.
Maintaining confidence is key to raising inflation expectations, and the Bank of Japan intends to control the yield curve in order to guide inflation expectations.
Along with the negative interest rate policy introduced in January 2016, the Bank of Japan was able to push down the yield curve in its entirety.
Kuroda pointed out that due to global headwinds, inflation in Japan took a hit from the sharp decline in crude oil prices and the slowdown in China.
As Kuroda pointed out, the primary reason inflation hasn’t risen in Japan is what he calls the deflationary mindset—the view that prices will not rise.
According to Kuroda, “Japan’s economic activity and prices, as well as financial conditions, have improved substantially, and Japan’s economy is no longer in deflation.”
Haruhiko Kuroda gave a new theme to Japan’s monetary policy in a September 21, 2016, meeting, focusing on yield curve and monetary accommodation.
According to Bloomberg, Treasury Inflation-Protected Securities (or TIPS) have generated a year-to-date return of 6.3% compared to 4.7% by the broad Treasury market.
Assessment of climate risks should be done at an industry sector level to optimize climate risk opportunities.
With a spike in global temperatures, many countries signed the Paris Agreement in December 2015. This agreement is intended to limit global warming.